IDP Education is highly dependent on international travel but, UBS asserts, the structural thematic is unchanged.
Increasing wealth in developing countries is leading to increased demand for education in developed countries.
Moreover, the company’s digital strategy differentiates, as it builds student contacts via “virtual” fairs while competitors remain in lockdown.
Buy rating retained. Target rises to $18.20 from $13.95.
Sector: Consumer Services.
Target price is $18.20.Current Price is $15.49. Difference: $2.71 – (brackets indicate current price is over target). If IEL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).