Barrington Research Expects Growth from Apollo Group
According to a research report published this morning, Barrington Research maintains its Outperform rating for Apollo Group Inc (NASDAQ: APOL).
Barrington Research mentions in the report, “Full-year fiscal 2012 revenue and operating income guidance was raised, which was a surprise since management reduced operating profit targets due to slower-than-expected new degreed enrollment during the second quarter.Subsequent to May 31, the company repurchased another 500,000 (for $15 million) at about $32 per share. Year-to-date, the company has repurchased approximately 18 million shares of stock (for $751 million) at about $43 per share. Management said, based on its preliminary evaluation, that “only one of University of Phoenix's over 100 programs failed on all three of the (eligibility) measures.” Also, based on this analysis, all the programs at WIU meet at least one of the GE tests. We assume investors will be relieved with this result, particularly since the data is backward-looking and has not been influenced by business model changes designed to help manage the University to the new regulations. Given its attractive valuation (less than 4x current year EBITDA), we are maintaining our OUTPERFORM investment rating based at this time.”
Apollo Group closed yesterday at $32.47.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.