American Public Education downgraded to Market Perform at William Blair

William Blair analyst Stephen Sheldon downgraded American Public Education to Market Perform from Outperform without a price target. The underlying dynamics in the company’s Q4 results were relatively negative, and its guidance was much weaker than expected, the analyst tells investors in a research note. The firm says the Rasmussen acquisition has continued to underperform, which is weighing heavily on American Public’s overall profitability. It believes the shares are likely to be range-bound until the company can drive stability and a return to growth in Rasmussen enrollments and profitability. This could take some time, especially with all the leadership changes at the university, contends Blair.