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Highlights
- Stock Surge: IDP Education's shares rise by 6.1%, reaching AU$13, the highest since November 21, after a Macquarie upgrade to "Outperform" from "Neutral."
- Positive Outlook: The upgrade is driven by expectations for sustainable growth in student placement and English language testing volumes from FY26.
- Analyst Sentiment: Macquarie retains a price target of AU$16, with 8 out of 12 analysts rating the stock "Buy," reflecting positive sentiment.
Shares of IDP Education (ASX:IEL) surged by 6.1% to AU$13 on Tuesday, marking the highest price since November 21, following an upgrade by Macquarie from "Neutral" to "Outperform." The upgrade is based on expectations of a return to sustainable growth in key business areas such as student placement and English language testing volumes starting from FY26.
Macquarie highlighted that while the recent lowering of student visa caps and upcoming elections in Australia and Canada could impact the business in the near term, these factors are expected to mostly annualize by 1H25. The firm emphasized that IDP's earnings are significantly tied to the immigration policies of Australia, Canada, the UK, and the U.S., which are pivotal for the company’s performance.
Despite potential short-term challenges, Macquarie retained its price target of AU$16 for the stock, reflecting confidence in the company's long-term prospects. The analyst consensus for IDP Education remains positive, with eight out of 12 analysts rating the stock "Buy", while four analysts maintain a "Hold" rating. The median price target among analysts is AU$18.6, according to LSEG data.
IDP Education has seen a 1.6% increase in its share price year-to-date (YTD), with today’s price surge contributing to this positive trend. The company is scheduled to report its 1H25 results on February 27, and investors will be closely watching the figures for further insights into its growth trajectory and the broader international education services sector.
