Market Overview

UPDATE: Bank of America Merrill Lynch Downgrades Apollo Group to Neutral, Lowers PT

Related APOL
Earnings Scheduled For October 21, 2014
Deutsche Bank On Department Of Education Mulling Changes In 90/10 Rule

In a report published Wednesday, Bank of America Merrill Lynch downgraded its rating on Apollo Group (NASDAQ: APOL) from Buy to Neutral, and lowered its price target from $40.00 to $28.00.

BofA Merrill Lynch noted, “Apollo remains in a period of significant transition as it faces continued new student start declines, an increasingly competitive environment and more price sensitive students. Apollo is not standing still. It is increasing its career focus and aligning itself with corporations. It froze tuition for incoming students & announced cost cutting initiatives which should generate >$300mn (8% of costs) in savings over the next two years. We are pleased to see the action. However, with continued disappointing new student start trends, limited visibility into the timing of improving starts, & little sign of student retention improvements, we find it difficult to recommend shares of Apollo despite significant weakness YTD. We downgrade to Neutral and await signs of improving trends.”

Apollo Group closed on Tuesday at $27.49.

Latest Ratings for APOL

DateFirmActionFromTo
Oct 2014Bank of AmericaMaintainsNeutral
Jun 2014Deutsche BankMaintainsHold
Jun 2014JP MorganMaintainsOverweight

View More Analyst Ratings for APOL
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Downgrades Analyst Ratings

 

Related Articles (APOL)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga Professional