Goldman Sachs Raises Price Targets On For-Profit Education Stocks; Favors Apollo (APOL) In the Group

Goldman Sachs raised its price targets on a number of for-profit education companies following the final regulations on Gainful Employment (GE), which "were less restrictive than the draft rules."

The firm said the biggest change was the elimination of the restricted band. In addition, the first year a program could become ineligible has been pushed out to 2015, versus the firm's assumption of 2014.

Goldman favors Apollo (Nasdaq: APOL) in the group. Goldman said "the proactive steps that Apollo is taking to revamp its admissions process, including its new orientation program, will result in better student outcomes over the longer term."

Price Target Changes:
Apollo (Nasdaq: APOL) (Buy) from $54 to $59
Education Management Corporation (Nasdaq: EDMC) (Sell) from $17 to $19
DeVry, Inc. (NYSE: DV) (Neutral) from $64 to $69
ITT Educational Services Inc. (NYSE: ESI) (Neutral) from $83 to $90
Strayer Education Inc. (Nasdaq: STRA) (Neutral) from $137 to $151

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferies Downgrades Sunway Healthcare Holdings (SUNMED:MK) to Hold
• Benchmark Reiterates Buy Rating on Strive Enterprises, Inc. (ASST), Highlights Differentiated Risk Management
• Deutsche Bank Upgrades Target Hospitality (TH) to Buy