IDP Education (ASX:IEL) is expected to see a return to sustainable growth in its student placement volumes by fiscal 2026 despite near-term uncertainty caused by changes to student visa caps and the upcoming elections in key markets, Macquarie Equities said, according to a Tuesday report from The Australian.

Recent policy changes, particularly in Australia and Canada, will primarily impact the company in the first half of fiscal 2025, Macquarie analyst David Fabris said.

Even if political shifts lead to adverse policy changes, improving volumes in IDP's English language testing business, especially in India and Canada act as a "margin of safety" for the company.

For the company's results in February, Fabris expects AU$92 million in adjusted earnings before interest and taxes for the first half of fiscal 2025, lower than consensus estimates of AU$121 million, the newspaper said.

Macquarie Equities upgraded IDP Education to outperform but maintained its AU$16 price target.

Shares of IDP Education rose past 6% in recent Tuesday trade.

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