Apollo Group, Inc. (APOL) Overweight

Apollo Group, Inc. (NASDAQ: APOL) posted decent results for the last quarter beating both top line and bottom line expectations. The scrip has been set a target price of $91 from the current trading range of $58.38 to $60.90, reports Mark A. Marostica, a Sr Research Analyst with Piper Jaffrey & Co.

Apollo Group, Inc., a private education provider, saw a marginal decline in its operating margin, which, coupled with a decline in student persistence, showed that all was not well in the quarter. However, the depressed P/E (approximately 12) shows that the scrip is currently undervalued by the market and may see appreciation in the near future.