Barrington analyst Alexander Paris notes that Zovio has announced that it has entered into a nonbinding Letter of Intent on December 30 with the Ashford University nonprofit entity to convert and separate Ashford University from Zovio, a transaction that is expected to close on or before June 1, 2020. Once the conversion and separation transaction are complete, the analyst believes Zovio will over time be valued versus an Ed Tech peer group rather than against the post-secondary education group. Paris reiterates an Outperform rating and a $10 price target on the shares.