60%+ returns in 2025: Here’s how AI-powered stock investing has changed the game
Investing.com - Morgan Stanley downgraded YDUQS Participacoes SA (BVMF:YDUQ3) from Equalweight to Underweight on Wednesday, while lowering its price target to R$14.00 from R$15.50.
The downgrade comes as Morgan Stanley identified multiple challenges across key profit and loss areas, including issues with student base, pricing, and interest expenses.
The investment bank expressed doubt about YDUQS meeting its 2025 adjusted earnings per share guidance of R$1.7-2.0, noting that both consensus estimates and Morgan Stanley’s own projections stand significantly lower at R$1.54-1.56.
While the firm acknowledged that improved working capital has supported near-term cash generation for YDUQS, it warned that the current earnings profile suggests a soft 2026 cash flow due to EBITDA deceleration and delayed cash effects from expenses such as bonuses and contingencies.
Morgan Stanley also noted that YDUQS appears less exposed to potential benefits from interest rate cuts compared to most of its peers in the sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.