Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Thursday, Jefferies analysts upgraded IDP Education stock (IEL:AU) from Underperform to Hold. This change follows a recent trading update from the company, which led to a reassessment of its performance expectations. The analysts set a new price target of AUD3.50, down from the previous AUD9.50.
In their comments, Jefferies analysts pointed to IDP Education’s first-half results for fiscal year 2025. The company had initially anticipated a lower contribution to adjusted EBIT in the first half of the fiscal year, expecting it to be between 50-55% of the full-year figure. However, the actual first-half skew came in at 78%, surpassing both the guidance and the previous year’s first-half contribution.
The trading update from IDP Education, released earlier this week, guided for a full-year adjusted EBIT of AUD115-125 million. This forecast prompted Jefferies to adjust their estimates and clear the previous overhang, leading to the stock rating upgrade.
Jefferies analysts noted that the revised price target of AUD3.50 per share implies a price-to-earnings ratio of 15.5 times for fiscal year 2026 estimates. This adjustment reflects the updated expectations for IDP Education’s financial performance.
The upgrade to Hold from Underperform signifies a change in Jefferies’ outlook for IDP Education, as the recent trading update provided clarity on the company’s financial trajectory for the current fiscal year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.