IDP Education shares rise as Macquarie upgrades stock to 'outperform'
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The news: IDP Education shares jumped in early trading on the ASX after Macquarie upgraded its rating on the education services provider.
The numbers: IDP shares were up 5.1% to $12.89 by 10:30am AEDT, having slid 15% since June last year.
Macquarie upgraded the stock from 'neutral' to 'outperform' and retained its $16 target price.
The context: Macquarie analysts said near-term downgrades and IDP's upcoming first-half result are potential buying opportunities in the company.
They expect student placement and English language testing to return to sustainable growth from FY26, after "significant uncertainty" caused by the recent lowering of student visa caps and upcoming in elections in Australia and Canada.
Recent policy impacts in those countries, which threaten volume impacts to student placements and English language testing, mostly annualise in the first half of FY25, Macquarie said, and could support IDP's volumes returning to sustainable growth from the next financial year.
The source: Macquarie research
