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On Tuesday, Jefferies initiated coverage on YDUQS Participacoes SA (YDUQ3:BZ), one of Brazil’s largest educational groups, with a Buy rating and a price target of R$15.00. YDUQS, known for its substantial presence in both on-campus and digital education, boasts over 270,000 on-campus students and more than 400,000 digital learners. The company holds a prominent position in medical education with 18 schools and in excess of 9,000 students.
The firm’s analysts anticipate that YDUQS’s earnings per share (EPS) will double over the next three years, driven by the company’s robust cash generation abilities. They expect the company to continue its practice of returning value to shareholders through a combination of buybacks and dividends.
YDUQS has a history of rewarding its shareholders generously, having distributed more than R$1.5 billion in dividends and buybacks since 2018, which represents 60% of its market capitalization. Moreover, the company has maintained a consistent dividend payment record since its initial public offering in 2007.
The analysts underscored the company’s financial discipline and commitment to shareholder returns, which they believe will be sustained moving forward. Their positive outlook on YDUQS’s stock is based on the company’s potential for continued growth in the education sector and its strong position in the market.
Investors will be watching YDUQS’s performance closely, as the company aims to leverage its market position and financial strategies to deliver on the growth and shareholder value outlined by Jefferies. The stock’s journey towards the R$15.00 price target will be of particular interest to those following the education sector in Brazil.
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