Morgan Stanley Defends Apollo Group (MS, APOL)

Morgan Stanley MS is out with an intra-day note on Apollo Group APOL noting that they believe given the level of past scrutiny, it is unlikely that the Department of Education will uncover any egregious violations at the for-profit educator. The analysts said, “With the continuous regulatory focus on APOL, our view is that the uncertainty is already in the stock price, as APOL trades at 3.1x CY11 EV/EBITDA.” Shares of APOL are currently lower on the session by 7.93%, trading at $35.42. Apollo Group, Inc. is a private education provider. The company offers educational programs and services both online and on-campus at the undergraduate, master's and doctoral levels through its wholly owned subsidiaries, The University of Phoenix, Inc.; Institute for Professional Development; The College for Financial Planning Institutes Corporation, and Meritus University, Inc.