UPDATE: Bank of America Raises PO on Apollo Group to $62

Bank of America has published a research report on Apollo Group

and has raised the price target from $58 to $62 after the company reported a +12.7% increase in student start growth during its November quarter. In the report, Bank of America writes, "We had expected starts to turn positive and note that this was helped by a particularly easy comparison, but the 6% underlying start growth was still well above expectations. Apollo expects positive start trends to continue in FY12, including similar start growth in 2Q (helped by an extra start date). The operational changes Apollo began to make last Fall are paying off, and enrollment advisor productivity is improving. The improving start trends support our expectation that industry starts will turn positive by 3Q12 as others cycle past their operational changes." Bank of America maintains its Buy rating on Apollo Group, which is currently trading up $2.96 from yesterday's $53.72 closing price.