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Investing.com - Morgan Stanley has upgraded Cogna Educacao SA (BVMF:COGN3) from Underweight to Equalweight, while raising its price target to R$4.00 from R$2.90.
The Brazilian education company has seen its stock rally approximately 240% year-to-date, according to Morgan Stanley’s analysis.
Despite Cogna remaining highly exposed to ongoing regulatory changes in Brazil’s education sector, the investment bank now sees a more balanced risk-reward profile for the company.
The upgrade reflects robust earnings momentum, with student base and liability management outperforming Morgan Stanley’s previous expectations.
The firm also cited Cogna’s sensitivity to interest rate cuts and potential regulatory de-risking, such as in-hub nursing programs, which may partially offset but not eliminate longer-term disruption risks.
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