Universal Technical initiated with a Buy at Texas Capital

Texas Capital initiated coverage of Universal Technical (UTI) with a Buy rating and $38 price target Universal embarked on re-energization of operational processes, real-estate rationalizations and cost-cutting about six years ago following years of sluggish student enrollment and started showing student-starts growth, a return to breakeven and “decent profitability,” the analyst tells investors. The firm believes Universal’s business is countercyclical and sees “a solid path forward,” paved with continuing enrollment growth, growth from its recent acquisitions and its new campuses and programs, even if the economy does not go into a recession.