That led Piper Jaffray analyst Peter P. Appert to slash his price target on Strayer shares by $17 to $119, maintaining a neutral rating on the stock.
Despite Apollo's drop in students starts, it could be better positioned relative to its education peers because the decline followed changes in the company's internal regulation. Strayer, meanwhile, saw a drop in student enrollment because of external factors beyond its control.
"While the company and industry are going through a transition, Apollo may be ahead of the curve based on its initiatives -- however painful they may be to near-term results," noted BMO Capital Markets analyst Jeff Silber.Strayer's enrollment update dragged much of the education sector sharply lower in Monday's trading but many industry players rebounded somewhat in Tuesday's session.
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