DeVry (NYSE:DV) Growth Appear Sustainable Say FBR Capital

In the midst of a regulatory atmosphere and growth challenges, it seems DeVry (NYSE:DV) will continue to grow in a tough sector at this time, according to FBR Capital.

"We are reiterating our rating and price target on DeVry shares following today's release of fall 2010 enrollment figures. Although the company's Carrington schools reported a dramatic decline in new starts, we believe the impact is manageable, and the core DeVry, Keller, and Chamberlain institutions are posting reasonable growth. Overall, we expect that consensus estimates for DeVry will still have to come down over time, as the cost of compliance, new student acquisitions, and education services will weigh on results. Nevertheless, we believe much of this is already priced into the name, and we believe the company will be one of the survivors once the regulatory dust settles," said FBR.

They reiterate their "Outperform" rating on DeVry, which closed Tuesday at $43.98, up $0.10, or 0.23 percent. FBR has a price target of $50 on DeVry.