Shares of IDP Education Ltd (ASX: IEL) surged 6.72% in intraday trading, as investors appear to be reassessing the company's prospects following a prolonged period of underperformance. The stock's sharp rise comes on the heels of a bullish outlook from Macquarie Group, which sees significant upside potential for the international education services provider.

The sudden uptick in IDP Education's stock price may be attributed to several factors. Firstly, Macquarie Group has maintained an outperform rating on the company, setting a price target of $16 per share. This represents a substantial 92% upside from the previous day's closing price, potentially attracting value-seeking investors. Additionally, the stock has been trading at its lowest forward price-to-earnings ratio since its ASX listing in 2015, suggesting it may be undervalued at current levels.

Another key driver for today's rally could be the upcoming elections in Canada and Australia, two crucial markets for IDP Education. Macquarie analysts suggest that favorable outcomes in these elections could provide "greater certainty for Student Placement stabilisation, and an eventual return to growth." With IDP placing approximately 25% and 40% of its international student volumes in Canada and Australia respectively, positive political developments could significantly impact the company's future performance. As investors digest these potential catalysts, they appear to be betting on a turnaround for IDP Education, driving the stock's impressive intraday gains.