Alexander Paris, an analyst from Barrington, reiterated the Buy rating on American Public Education (APEI – Research Report). The associated price target remains the same with $24.00.
Alexander Paris has given his Buy rating due to a combination of factors, primarily driven by American Public Education’s strong financial performance in the fourth quarter of 2024. The company reported revenues that exceeded expectations, with a 7.4% increase to $164.1 million, surpassing both the estimates and management’s guidance. Additionally, the adjusted EBITDA saw a significant rise of 22.2% to $31.4 million, again outperforming estimates and guidance.
Moreover, the company’s initial guidance for 2025 suggests continued growth, with projected revenues and adjusted EBITDA expected to rise. Despite the impressive performance, APEI’s shares are trading at a substantial discount compared to its peer group, which presents an attractive investment opportunity. The anticipated recovery in demand for affordable online education and nursing programs, along with expected enrollment growth and margin expansion, further supports the OUTPERFORM rating and the $24 price target, indicating a potential upside of approximately 25%.
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