Bear Stearns Cuts DeVry to Peer Perform from Outperform

Says the undergraduate program provider's shares are overvalued after having risen nearly 40% since August.

Bear Stearns downgraded DeVry (DV ) to peer perform from outperform, explaining that the undergraduate program provider's shares are overvalued after having risen nearly 40% since August.

Analyst Jennifer Childe says the company's shares have come within 2% of her former $25 target. She notes that DeVry had a 6.4% rise in new undergrad enrollment and slight deceleration from the summer's 7% growth, short of her 9% growth estimate. She says that the DeVry's graduate enrollment was weaker than expected, while technology enrollment was up 4.4% and online course takers were up 50%. She expects shares to be somewhat range-bound until evidence surfaces that the company's enrollment momentum is sustainable.

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