What's Happening?
Jefferies has revised its price target for IDP Education, a joint owner of the IELTS English language exam, due to anticipated lower student placement volumes. The brokerage firm reduced the price target from
A$8.6 to A$7.9 per share while maintaining a 'buy' rating. This adjustment follows a forecasted 45% decline in FY26 student placement revenues in Canada, influenced by the country's federal budget. Despite the negative impact of the UK immigration white paper on IDP Education, the firm expects only a 6% decline in UK volumes for FY26, compared to an 18% decline in FY25. The stock has seen a significant drop of approximately 61% this year.
Why It's Important?
The adjustment in IDP Education's price target reflects broader challenges in the international education sector, particularly in student placements. The anticipated decline in revenues from Canada highlights the impact of governmental policies on educational institutions. The UK immigration white paper's limited effect on FY26 suggests potential resilience in the UK market, despite broader global challenges. Investors and stakeholders in the education sector must consider these factors when evaluating the financial health and future prospects of companies like IDP Education.
