Wunderlich Maintains Buy on Apollo Group Despite Delayed Catalysts

Wunderlich Securities has published a research report on Apollo Group

as the company's 2Q results came mixed, delaying potential catalysts. In the report, Wunderlich writes, "Continued market antipathy and swelling competition challenged Apollo's (

) Q2 marketing efforts. And despite higher spend and new creative in 2H, APOL expects starts could decline in Q3 by a double-digit percentage. That acknowledged, we are encouraged by improving conversion rates in Q2 because they indicate to us that the UoP value proposition remains sound, and that enrollment counselors are regaining confidence. Without understating the seriousness of diminished inquiry flow, this is far more easily addressed through greater spend and smarter execution than would be weakening conversions." Wunderlich maintains its Buy rating and $63 price target on Apollo Group, which is currently trading down $3.49 from yesterday's $43.20 closing price.