Services Sector Review: OfficeMax Makes Fans, College Stocks Sell Off
Barclays upgraded OfficeMax Incorporated (NYSE:OMX) citing valuation, stabilizing capital position, and improving small business outlook. Price target remains $5.
The shares closed at $5.37, up $0.72, or 15.48%, on the day. Its market capitalization is $462.48 million.
Apollo Group, Inc. (NASDAQ:APOL), DeVry Inc. (NYSE:DV): Piper Jaffray attributes today’s sell-off in Education stocks to worries over potential tightening in the 90/10 rule. However, Piper does not believe changes in the 90/10 rule are imminent and continues to expects education stocks to perform better in 2012. The firm calls Bridgepoint Education (NYSE:BPI) and Grand Canyon (NASDAQ:LOPE) its favorite names in the space.
APOL shares closed at $54.03, down $3.67, or 6.36%, on the day. Its market capitalization is $6.83 billion.
Capella Education Company (NASDAQ:CPLA): Morgan Stanley said Education stocks are overreacting to reports that President Obaam will crack down on the for profits company’s and that it is unlikely given the administrations past stance on previous proposals. The firm recommends using the the pullback in Apollo Group and DeVry (NYSE:DV) as buying opportunities.
CPLA shares closed at $40.69, down $1.11, or 2.66%, on the day. Its market capitalization is $588.19 million.
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