Is IDP Education (IEL) a good stock for short-medium term investment?

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Question asked 10/02/2023

Is IDP Education (IEL) a good stock for short-medium term investment?

Hi James and the Team IDP Education Ltd (IEL) is the leading stock in the ASX Education Market. It has recovered strongly from a low $26.45 Dec 28th to $$31.21 today (7/Feb) an 18% rise. Recently, Pearsons English Language Test has now been accepted as an alternative to the IELTS for Canadian Economic Visas. This would have an impact on the English Test business for IEL in Canada. On the other hand, IEL continues to experience strong recovery in its Australian business with the opening up of China and the requirement for Chinese University students to attend classes I would like to hear is IEL a good stock for short to medium-term investment. Thanks for taking this question. Best regards

Answer

Hi Peter,

We like IEL this global student placement business moving into 2023 as the world moves on from Covid and Chinese students return to Australian classes, we believe the later looks set to be the dominant factor in the companies performance i.e. there are 50% fewer Chinese students in Australia than in 2019 illustrating the huge room for improvement.

we like the risk/reward on IEL below $32 targeting a move back towards $40, or 25% higher.

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IDP Education (IEL)

LAST UPDATED 10/02/2023 07:26

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