Stifel, Bank Of America Are Talking About Apollo Education

Courtesy of Benzinga.

On Thursday, Stifel issued a report on Apollo Education Group Inc (NASDAQ: APOL) as the stock's volume has not recovered. Stifel lowered its target price from $35 to $25, but still rates Apollo Education as a Buy.

"Our Buy thesis which was based on the stock being cheap and the expectation that we were getting closer to a turn in core business has not played out as expected," analysts wrote. "The disappointment will likely cause dislocation in the shareholder base and likely an "oversold" condition near term.

"However…the stock is too cheap even on reduced expectations."

Related Link: Apollo Education Group Shares Tumble On Weak Revenue Forecast

Stifel believes that Apollo's participation in digital education and training could make it an attractive candidate for a strategic buyer. Analysts consider the educational company's cash flow to be attractive, especially for a financial buyer.

Bank Of America Talks Too

Bank of America also commented on Apollo this Thursday. The firm holds a Neutral rating on the stock with a $24 price target.

"We are reducing estimates on lower student start & retention assumptions," their analysts wrote.

"While the trajectory of starts remains uncertain, we do expect improvements with the lap of the LMS rollout (mid 4Q15) and continued progress at Apollo Global (11% of FY14 revenue)."

Posted-In: Jason Anderson Jerry Herman StifelAnalyst Color Price Target Analyst Ratings