2U price target lowered to $2 from $4 at Baird

Baird lowered the firm’s price target on 2U to $2 from $4 and keeps a Neutral rating on the shares. The firm said the company’s results/outlook call for increased caution even from depressed level as exiting several large contracts will rebase run-rate revenue/EBITDA lower, before various growth drivers can be layered on, and will be executing the major transition with a levered balance sheet.