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On Thursday, Texas Capital Securities initiated coverage on American Public Education (NASDAQ:APEI) with a Buy rating and a price target of $35.00. The research firm sees the company as a leading provider of postsecondary education, particularly noting its strong presence in military and nursing education sectors. According to InvestingPro data, APEI’s stock has demonstrated impressive momentum, delivering a 59.3% return over the past year and currently trading near its 52-week high of $30.09.
American Public Education, recognized for its extensive work in educating military personnel, significantly expanded its reach in the nursing education field following its acquisition of Rasmussen University (RU). The company now serves an almost equal mix of military and civilian nursing students. With a market capitalization of $524.41 million, APEI has shown strong financial health, as indicated by InvestingPro’s analysis, which reveals the company maintains a healthy current ratio of 3.27 and operates with moderate debt levels.
Texas Capital Securities highlighted that American Public Education is at a turning point, particularly with the integration of Rasmussen, which is expected to contribute to positive operating margins from the fourth quarter onward throughout the fiscal year 2025. The firm also anticipates improvements in enrollment across American Public Education’s programs. This optimistic outlook aligns with InvestingPro’s analysis, which indicates net income growth expectations and forecasts EPS of $1.81 for FY2025. InvestingPro has identified 13 additional key insights about APEI, available to subscribers.
The analyst from Texas Capital Securities expressed optimism about the company’s future financial performance, suggesting that American Public Education could surpass its fiscal year 2025 earnings guidance. They forecast that the company’s EBITDA could grow by more than 20% year-over-year in FY25, a projection that they believe is not currently reflected in the market price.
The positive outlook is based on the company’s strategic progress, including the successful acquisition of Rasmussen University and the expected benefits from this expansion. The firm’s analysis suggests that American Public Education is well-positioned to improve its financial metrics and deliver on its growth targets.
In other recent news, American Public Education (APEI) reported its first-quarter 2025 financial results, showcasing a mixed performance. The company’s earnings per share (EPS) missed expectations, coming in at $0.41 compared to the forecasted $0.44. However, revenue exceeded projections, reaching $164.6 million against the anticipated $161.97 million. APEI demonstrated significant year-over-year growth with a 6.6% increase in revenue and a net income of $7.5 million, a notable improvement from a $1 million loss in the same quarter the previous year. The company is also focusing on consolidating its educational institutions and expanding its nursing programs, which contributed to its positive performance. For the full year 2025, APEI has projected revenue between $650 million and $660 million, with adjusted EBITDA expected to range from $77 million to $87 million. Additionally, APEI’s stock experienced a decline during regular trading hours but saw a slight increase in aftermarket trading. The company remains optimistic about continued enrollment growth and potential revenue synergies from its institutional consolidation.
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