In major news on Australian stocks, IDP Education Ltd. (AU:IEL) shares fell by over 5%, as of writing, after the company said that it expects the international education market to shrink by 20-25% over the next twelve months amid the migration policy changes. In its regulatory and market update, the company stated that the current policy framework has impacted its IELTS (International English Language Testing System) and placement volumes for the second half of FY24.
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Year-to-date, IDP stock has declined by more than 25% over policy changes. In January, the stock fell after Canada reduced foreign student visas.
IDP Education is a global education services company dedicated to helping individuals achieve their international education goals.
IDP Education Faces Market Hurdles
IDP Education is experiencing major market hurdles due to stricter policies in key destination countries such as Australia, the UK, and Canada. These countries have implemented several changes to international student visa regulations, negatively impacting IDP’s business. According to visa data, aggregate industry volumes to Australia, the UK, and Canada have declined by 20-30% in the first quarter of 2024 compared to the same period a year ago.
Nonetheless, the company views this as a short-term challenge and remains well-positioned to further capitalize on its dominant market position. For the full-year Fiscal 2024, IDP anticipates a 15-20% rise in student placement volumes, a 15-20% decrease in IELTS volumes, and strong average fee growth compared to the previous year. It also expects FY24 earnings to be in line with the previous year.
Additionally, IDP is implementing a cost reduction program to cut its expenses in sync with its short-term revenue goal.
IPD will announce its full-year results for FY24 on August 29, 2024.
What is the Share Price Forecast for IDP Education?
According to TipRanks’ consensus, IEL stock has received a Moderate Buy rating based on four Buys, three Holds, and one Sell. The IDP Education share price forecast is AU$19.73, which is 33% above the current trading levels.
