Update shared on26 Sep 2025
Fair value Increased 5.48%Analysts raised their price target for American Public Education from $36.50 to $38.50, citing robust post-COVID enrollment growth, outperformance in quarterly results, and a strong position in military and nursing education as key drivers of optimism and perceived undervaluation.
Analyst Commentary
- Bullish analysts highlight the company's strong recovery post-COVID, evidenced by sustained enrollment growth and stabilization, which has driven significant share price appreciation.
- Continued outperformance in quarterly results, with recent earnings and raised FY25 guidance exceeding expectations, supports upward price target revisions.
- Analysts note American Public Education holds a leading position in military education and has seen a strategic inflection at Rasmussen University, benefiting from an ongoing nursing shortage.
- Expectations for a more favorable regulatory environment and persistent demand for affordable online and nursing education provide a positive outlook for profitable growth.
- Despite recent gains, the stock is viewed as undervalued, trading at a significant discount to peers, with further margin expansion and multiple catalysts still ahead.
What's in the News
- The Supreme Court has permitted the Trump administration to proceed with mass layoffs at the Education Department, a decision that could affect publicly traded education companies including American Public Education (APEI) (Wall Street Journal).
- American Public Education completed the redemption of all outstanding Series A Senior Preferred Stock for $44.5 million, including accrued dividends, funded from cash on hand (Key Developments).
- The company executed no share repurchases during Q2 2025 but has now completed the previously announced buyback program, totaling 431,555 shares (2.44%) at $4.42 million (Key Developments).
- Full-year 2025 consolidated revenue guidance is reaffirmed at $650–$660 million; net income guidance is reset to $18–$24 million to reflect losses from the sale of Graduate School USA and the preferred equity redemption (Key Developments).
- Q3 2025 guidance anticipates consolidated revenue of $159–$161 million with an expected net loss to common stockholders between $2.9 million and $0.8 million (Key Developments).
Valuation Changes
Summary of Valuation Changes for American Public Education
- The Consensus Analyst Price Target has risen from $36.50 to $38.50.
- The Future P/E for American Public Education has risen from 13.68x to 14.42x.
- The Discount Rate for American Public Education remained effectively unchanged, moving only marginally from 7.49% to 7.47%.
Disclaimer
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