UPDATE: Stifel Downgrades American Public Education to Hold, Removes PT on Multiple Negative Factors

In a report published Friday, Stifel analyst Jerry Herman downgraded the rating on

from Buy to Hold, and removed the $42.00 price target. In the report, Stifel noted, “We are downgrading the shares of American Public Education from Buy to Hold given its proximity to our price target and lower visibility on second half student volume trends. While, we believe APEI universities (APU and AMU) offer excellent value proposition for students and independent quality recognition awards are underappreciated by investors; we believe the combination of unfavorable near term volume trends, growing price competitiveness potentially diluting the company's position as low cost provider; and uncertainties about military funding could constrain upside near term. We expect value proposition and quality to be recognized over the long run and thus we are looking for an opportunity to become involved again.” American Public Education closed on Thursday at $38.66.