American Public Education (APEI), a for-profit education company that focuses on serving members of the military, is climbing after Wells Fargo analyst Trace Urdan upgraded the stock to Outperform from Market Perform in a note to investors earlier today. The budget extension passed by Congress this week restores funding for a program that pays for members of the military to take college courses, Urdan stated. Moreover, the sequester could reduce the number of people serving in the military by as much as 200,000 by the end of this year, according to Urdan, who cited an estimate by the House Armed Services Committee staff. A large number of those leaving the military are likely to use the Post 9/11 GI bill to obtain additional training and degrees, the analyst wrote. Urdan raised his price target on the stock to $37-$41 from $27-$33. In early trading, the stock climbed $1, or 3%, to $35. Other for-profit education stocks also rose, with Apollo Group (APOL) gaining 2% to $17.20, Grand Canyon (LOPE) climbing 1.3% to $25.10 and Education Management Corp (EDMC) advancing 1.6% to $3.75.
- American Public Education