By Aaditya GovindRao

Jan 7 (Reuters) - Shares of Australia's IDP Education

jumped to a four-month high on Tuesday after Macquarie upgraded the stock to "outperform", saying uncertainties around student immigration policies and elections in key markets are already priced in.

The stock rose as much as 7.7% to A$13.2, its highest since late August, by 0254 GMT. It is set for its strongest session since the latter half of November and is the top gainer on the benchmark S&P/ASX 200 index , which is up 0.1%.

Macquarie upgraded IDP Education to "outperform" from "neutral". Its price target remained unchanged at A$16.

Analysts, on average, rate the stock "buy", according to LSEG data. Their median price target is A$18.6.

IDP Education provides placement services to students worldwide looking for admissions at foreign institutes. It also jointly owns the IELTS English language exam alongside the British Council and Cambridge University Press & Assessment

Both Australia and Canada, IDP Education's main markets, have recently trimmed new international student enrollments, with opposition parties suggesting further tightening ahead of upcoming elections.

However, these policies should only affect the firm's upcoming half-year results, and given the recent share performance, this near-term impact may already be priced in, Macquarie analysts said.

IDP Education's stock fell nearly 37% in 2024.

Moreover, current international student volumes in both countries are tracking lower than the enrollment limits, "providing a buffer should the opposition make good on comments to reduce volumes", the analysts said.

This positions IDP Education's student placement volumes to return to sustainable growth fiscal 2026 onwards, starting July, they said.

In October, IDP Education had warned of a 20%-25% decline in international student volumes for fiscal 2025.

They also said that improving diplomatic relations between India and Canada in the medium-term may benefit India's IELTS volumes.

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Sonia Cheema)

((Aaditya.GovindRao@thomsonreuters.com;))