UPDATE: Deutsche Bank Downgrades Apollo Group to Hold
Deutsche Bank lowers its price target on Apollo Group (NASDAQ: APOL) to Hold from Buy and cuts its price target by $15 to $45 as the company missed on February quarter results.
Deutsche Bank notes, "We believe that much of the reason for the Feb. quarter miss was Apollo's strategy to increase the quality of its new enrollment. We think the improving labor market is also hurting, but is more of a cal2H12 headwind, while the competitive environment gradually gets tougher as time passes. We now believe FY2H12E enrollment will be negative YoY. We have lowered cal12E EPS from $3.46 to $2.87. We think cal12E EPS will be the trough and value the stock on 15x cal13E EPS of $2.96, or $45, leaving the shares fully valued."
APOL closed at $43.04 a share on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.