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Investing.com - Morgan Stanley (NYSE:MS) has upgraded Anima Holding SA (BVMF:ANIM3) from Equalweight to Overweight and raised its price target to R$5.00 from R$3.70.
The upgrade comes despite short-term caution on the Brazilian education company, which currently faces flat enrollment, mid-single-digit revenue growth lagging behind peers, and bottom-line pressure from high leverage and interest rates.
Morgan Stanley cited three key reasons for the more positive outlook: potential peak of the rate-hiking cycle, better-than-expected first-half 2025 intake cycle, and differentiated protection from regulatory risks.
The firm noted that while the first two factors are partly reflected in the current share price, Anima’s protection from regulatory risks appears underappreciated by the market.
Anima Holding’s stock has already gained 128% year-to-date, though its valuation remains in line with industry peers, according to the research note.
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