We like this global student placement business’s growth profile as the world moves on from Covid albeit slowly in the case of China. Penny Wong’s current visit to the world’s second-largest economy could prove to be a pivot point in turning around the missing Chinese students pre-Covid i.e. there are 50% fewer Chinese students in Australia than in 2019 illustrating the huge room for improvement. It might take time for Chinese families to be comfortable letting their children study in Australia but there’s nothing like word of mouth and the ~78,000 students currently here hopefully will relay the message that Australia is safe and dealing with Covid extremely well.
- IEL isn’t cheap trading on a PE of 47.3x FY’23 earnings but after almost halving we believe value is returning to IEL underpinned by strong top-line growth of ~30% forecast in FY23
MM likes IEL into the current weakness but the turnaround is likely to be slow
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