William Blair analyst Stephen Sheldon has maintained their bullish stance on APEI stock, giving a Buy rating today.
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Stephen Sheldon has given his Buy rating due to a combination of factors that highlight American Public Education’s potential for growth and value. The company has set ambitious long-term targets, including a 10% organic revenue CAGR and 20% adjusted EBITDA margins by 2029, which have been well communicated by management. This strategic vision, along with improving execution, has increased confidence in the leadership’s ability to achieve these goals.
Additionally, APEI is currently trading below its peers, despite having targets that suggest faster revenue growth and similar margin levels. The potential for the stock to re-rate and trade in line with or at a premium to its peers presents a compelling opportunity. Furthermore, the countercyclical nature of higher education enrollments and the company’s focus on demographics less susceptible to AI disruption, such as military learners and nursing, provide a stable foundation for future performance. The recent muted market response to positive announcements is seen as an attractive entry point for long-term investors.
In another report released today, Northland Securities also maintained a Buy rating on the stock with a $46.00 price target.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APEI in relation to earlier this year.