BUZZ-IDP Education shares tank, UBS cuts price target on challenging conditions

Reuters
02-03
BUZZ-IDP Education shares tank, UBS cuts price target on challenging conditions

** Shares of ASX-listed international education services provider IDP Education IEL.AX fall 4.1% to A$12.79, their lowest level since Jan. 23

** IEL stock fell as much as 5.6% earlier in the day, marking its biggest intraday drop since Nov. 21

** Losses in-line with broader ASX 200 benchmark index .AXJO, which is down 2% on fears of the fallout of U.S. tariffs on China, Canada, and Mexico

** UBS cuts price target on IEL to A$14.70 from A$16.45, retains "Neutral" rating

** Brokerage says visa data suggests challenging conditions have continued in 1H25

** Ongoing uncertainty, together with tightening gov. policies and international student negative sentiment has weighed on student visa data - which will be reflected in IEL's businesses

** India, where IEL's IELTS volumes are most heavily weighted, was the weakest contributor throughout CY24

** Brokerage cuts FY25 EBIT view by 6% and by 4% for FY26 and FY27 each

** Seven of 11 analysts rate IEL "Buy" or higher, while 4 rate it "Hold"; their median PT is A$18.60 – LSEG data

** IEL up 5.6% this year, including the day's moves

(Reporting by Sameer Manekar in Bengaluru)

((Sameer.Manekar@thomsonreuters.com;))

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