Morgan Stanley Defends Apollo Group (MS, APOL)

Morgan Stanley (NYSE: MS) is out with an intra-day note on Apollo Group (NASDAQ: APOL) noting that they believe given the level of past scrutiny, it is unlikely that the Department of Education will uncover any egregious violations at the for-profit educator.The analysts said, “With the continuous regulatory focus on APOL, our view is that the uncertainty is already in the stock price, as APOL trades at 3.1x CY11 EV/EBITDA.”Shares of APOL are currently lower on the session by 7.93%, trading at $35.42. Apollo Group, Inc. is a private education provider. The company offers educational programs and services both online and on-campus at the undergraduate, master's and doctoral levels through its wholly owned subsidiaries, The University of Phoenix, Inc.; Institute for Professional Development; The College for Financial Planning Institutes Corporation, and Meritus University, Inc.