Sterne Agee Reports on American Public Education (APEI)

Sterne Agee commented on American Public Education (NASDAQ: APEI) in a report released yesterday. In the report, Sterne Agee had a positive outlook on the company.

Sterne Agee writes, “For the March quarter, APEI reported a significant acceleration in civilian enrollment (+97% y/y versus last quarter's +74%) and some acceleration in military enrollment (+16% y/y versus last quarter's +14%) resulting in better-than-expected revenue. While many of APEI's public peers are facing touch market conditions (negative publicity, tough comps, more competition, higher acquisition costs), APEI is taking share. Seeing this market turmoil as an opportunity, management has stepped up its marketing and G&A costs to gain further market share, expand brand awareness and ensure regulatory compliance. This is putting short-term pressure on operating margins and resulted in this quarter's EPS coming in at the lower end of guidance.”

Sterne Agee has a Buy rating on APEI and a price target of $45. Shares of the company closed the trading day at $45.19, up $0.26 from the opening bell.