American Public Education: Strong Quarterly Performance and Positive Outlook Justify Buy Rating

William Blair analyst Stephen Sheldon has maintained their bullish stance on APEI stock, giving a Buy rating yesterday.

Stephen Sheldon has given his Buy rating due to a combination of factors including American Public Education’s strong quarterly performance and attractive valuation. The company reported a notable increase in revenue and profit, with revenue reaching $165 million, which was 7% higher than the previous year and exceeded estimates by 2%. The adjusted EBITDA also saw a significant rise, coming in at $21 million, which was 25% higher year-over-year and surpassed expectations by approximately 40%.
Management’s reaffirmation of revenue guidance and increased profit expectations for 2025 further supports the Buy rating. The company is projected to achieve revenue between $650 million and $660 million, with an adjusted EBITDA expected to grow by about 14% at the midpoint. Additionally, the strengthening enrollment trends and improving profitability, especially at Rasmussen, contribute to the positive outlook for the company. These factors collectively suggest that American Public Education is well-positioned for continued growth, justifying the Buy recommendation.

In another report released yesterday, Lake Street also maintained a Buy rating on the stock with a $30.00 price target.