Australia's IDP Education falls after UBS flags earnings risks on policy changes
14/05/2024 05:36
** Shares of Australia's IDP Education IEL.AX down as much
as 2.7% at A$15.610
** Analysts at UBS flag caution around potential share price
depreciation for IEL due to uncertainty around educational
policy changes in the country and related earnings impact
** UBS downgrades IEL's rating to "neutral" from "buy";
slashes price target to A$17.65 from A$25.30
** Australia is enforcing tougher visa rules for foreign
students as the sudden influx of foreign workers and students
has exacerbated pressure on an already tight rental market
** UBS sees IEL's earnings before interest and taxes in the
second half of 2024 falling by 21%
** "While we believe a large degree of negativity is already
incorporated in IEL's share price, we think recent developments
extend the duration of uncertainty, which could prolong share
price recovery and negatively impact earnings - UBS
** IEL stock down 19.92% this year, as of last close
(Reporting by Roushni Nair in Bengaluru)
((Roushni.Nair@thomsonreuters.com;))