FBR Capital Reiterates a 'Market Perform' on Apollo Education (APOL); A Mixed Bag: Enrollment Uncertainty; 90/10 Relief
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Price: $10.00 --0%
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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FBR Capital reiterates a 'Market Perform' on Apollo Education (NASDAQ: APOL), PT from $45 to $47.
FBR analyst says, "We reiterate Market Perform on APOL shares and raise our price target to $47 after APOL reported F3Q11 earnings last night that beat our low expectations. Although new starts continue to come under pressure and enrollment visibility beyond F4Q11 remains limited, management is taking appropriate steps to improve student outcomes, in our view, and is making progress in lowering exposure under the 90/10 rule. As a result, our longer-term outlook has become incrementally more positive: We believe sustainable earnings growth can return, but only if APOL can drive a more meaningful cushion under 90/10. However, although we are warming up to APOL shares, we remain on the sidelines awaiting a more attractive entry point."
"We raise our FY11, FY12, FY13 operating EPS estimates to $4.75, $3.30, $3.35, respectively, from $4.35, $3.10, $3.05. Our FY12 and FY13 adjustments primarily reflect a lower share count and a modestly better enrollment outlook, partially offset by higher expenses."
For more ratings news on Apollo Education click here and for the rating history of Apollo Education click here.
Shares of Apollo Education closed at $43.68 yesterday.
FBR analyst says, "We reiterate Market Perform on APOL shares and raise our price target to $47 after APOL reported F3Q11 earnings last night that beat our low expectations. Although new starts continue to come under pressure and enrollment visibility beyond F4Q11 remains limited, management is taking appropriate steps to improve student outcomes, in our view, and is making progress in lowering exposure under the 90/10 rule. As a result, our longer-term outlook has become incrementally more positive: We believe sustainable earnings growth can return, but only if APOL can drive a more meaningful cushion under 90/10. However, although we are warming up to APOL shares, we remain on the sidelines awaiting a more attractive entry point."
"We raise our FY11, FY12, FY13 operating EPS estimates to $4.75, $3.30, $3.35, respectively, from $4.35, $3.10, $3.05. Our FY12 and FY13 adjustments primarily reflect a lower share count and a modestly better enrollment outlook, partially offset by higher expenses."
For more ratings news on Apollo Education click here and for the rating history of Apollo Education click here.
Shares of Apollo Education closed at $43.68 yesterday.
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