IDP Education (IEL) is a leading provider of international student placement and English testing services. The stock has plunged lower this week following Canada’s decision to allow competitors to enter the Student-Direct-Stream (SDS) component of student visas which marks the final stage of opening markets to competitors. In the UK, opening to competitors resulted in a 10% share loss – while Australia’s onshore market share loss was even greater. Given the momentum of Pearson’s Test of English (PTE), we see scope for up to 30% Student-Direct-Stream (SDS) share loss and it’s difficult not to believe an all-inclusive PTE offering in India won’t result in more share loss in non-SDS and work visas.
IEL shares broke to fresh 2-year lows yesterday and while analysts attempt to 2nd guess the impact on earnings it’s hard to see any meaningful bargain hunting in today’s pessimistic environment.
- We can easily see another 10-20% downside for IEL.
MM has no interest in IEL at this stage
Add To Hit List
