Deutsche Bank Lowers Apollo Price Target (APOL)

Amid estimates of "no growth in FY11 and higher regulatory risk," Deutsche Bank lowered its price target on shares of Apollo Group APOL to $75 from $80 this morning. Deutsche Bank, which maintains its Buy rating on Apollo, still finds the stock "attractive." Deutsche analysts note that "negative regulatory developments, a material cash flow impact from the SEC inquiry, or inability to grow post University Orientation" could depress Apollo share value. Despite the downside risk, Deutsche Bank raised its 4Q10 EPS estimate from $1.09 to $1.30 to reflect strong 4Q guidance. Deutsche Bank remains positive about Apollo. Analysts note that Congressional and DoE regulatory activity, SEC inquiries, and macro job growth will be key drivers of stock price. Apollo Group, Inc. (Apollo Group) is a private education provider. The Company offers educational programs and services both online and on-campus at the undergraduate, graduate and doctoral levels through its wholly-owned subsidiaries. Shares closed June 30 at $42.47.