DA Davidson Starts American Public Education (APEI) at Buy, 'Attractive risk/reward'

DA Davidson analyst Tom White initiates coverage on American Public Education (NASDAQ: APEI) with a Buy rating and a price target of $40.00.

The analyst comments "Attractive risk/reward at 5.4x '26 EV/EBITDA – APEI's MSD growth rate and low-teens adj. EBITDA margins are below peer averages (of HSD and mid-20%, respectively - though business mix differences can skew margin comparisons vs. peers) but APEI's EV/EBITDA multiple (~half its peer average, even after the ~49% run in APEI shares YTD) provides adequate margin of safety, in our view, for any investors that may question the sustainability of the improving fundamentals at RU. We believe the recent strengthening/clean-up of APEI's balance sheet is also likely to support valuation here, following the sale of two administrative buildings, a re-class of $24.5M to unrestricted cash, and the redemption of $43M in preferred equity."

For an analyst ratings summary and ratings history on American Public Education click here. For more ratings news on American Public Education click here.

Shares of American Public Education closed at $31.60 yesterday.

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