The broker has reviewed its position on IDP Education post equity raising, envisiging a three-stage recovery beginning with localised lockdowns and travel restrictions extending lower volumes, followed by lockdowns easing but travel restrictions lagging in FY21, and finally normalisation in FY22 with IDP taking market share.
The raising puts the company is a good position ahead of a recovery. Target falls to $15.05 from $23.30, Outperform retained.
Sector: Consumer Services.
Target price is $15.05.Current Price is $13.95. Difference: $1.10 – (brackets indicate current price is over target). If IEL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
