Deutsche Bank Reiterates Buy Rating of Apollo Group
Friday, September 23, 2021 4:10 PM

Analysts at Deutsche Bank maintain Buy rating on the shares of Apollo Group Inc. (Nasdaq: APOL) as they believe that underlying new enrolment trends are improving at APOL due to improving trends in student inquiries, improvements in student advisor productivity and easing competitions. They set a price target of $55 for the stock.


DB analysts state that they like Apollo into third quarter financial results as they think earnings per share will rise due to positive new enrollment trends in the November quarter. They add that the noise around military funding going into the 1990 in the 90/10 calculation has created a buying opportunity in Apollo. They state that the US Senate subcommittee hearing titled, Improving Educational Outcomes for our Military and Veterans, revisited themes raised in previous Senate hearings on for profit education including predatory enrolment practices, the need for increased oversight, and quality assurance.  They add that shares were likely under pressure due to Senates timely release of data suggesting Apollo's military revenue exposure for the FY2010 and FY2011 academic year is over 4 percent. They state that if military funding was included in the 1990 in FY2011, it is likely Apollo would have breached the 90 percent threshold.


On a year-to-date basis, Apollo has a share performance of 19.68 percent, and as compared to Standard & Poor’s 500, it has an YTD share performance of 23.77 percent.


Apollo Group provides educational programs and services at the undergraduate, masters, and doctoral levels. It has a market capitalization of $6.49 billion with a P/E ratio of 9.05. It has 137 million outstanding shares.


Shares added 2.52 percent or $1.02 to trade at $41.43.