Ahead of the Bell: Apollo raised, DeVry cut

Kelly Flynn raised Phoenix-based Apollo to "Outperform" from "Neutral" in a note to investors. Based on management comments and meetings with the company, she expects Apollo will raise prices most aggressively in the sector due to a recently enacted $2,000-per-year federal loan limit increase.

Flynn raised her price target to $60 from $50, implying she expects a return of 17 percent on Thursday's closing price of $51.19.

Separately, Lehman Brothers analyst Gary Bisbee raised his earnings forecast modestly on Apollo in a Friday note, saying he, too, remains positive on the stock in light of the loan-limit increase.

Meanwhile, Flynn downgraded shares of fellow for-profit education company DeVry Inc. to "Neutral" from "Outperform," saying shares are fairly priced after climbing steadily since February.

The stock is up 38 percent since Feb. 21, when shares hit a monthly low of $43.86.

Flynn said she still expects growth and better margins from the Oakbrook Terrance, Ill., company but said those improvements are already priced into the stock. She maintained her $65 price target.