Apollo Group to be a "Great Story" in Late 2012/Early 2013, Piper Jaffray Reports

“In dialing back enrollments, screening students more aggressively and trimming costs we believe Apollo (NASDAQ: APOL) has taken the right steps to improve student outcomes and ultimately drive a reacceleration in revenue and earnings growth,” Piper Jaffray wrote in a report.

“Largely in-line F3Q results suggest that the worst of the earnings reset process may be behind us. That said, with another 6-8 quarters of negative earnings comps anticipated, we think it's too early to be involved in the stock. We think APOL will likely be a great story in late 2012/early 2013 as we get closer to positive earnings comparisons. For now, we'd stay on the sidelines.”

Apollo closed Thursday at $43.68.