Afya downgraded to Sell from Neutral at Citi

Citi downgraded Afya (AFYA) to Sell from Neutral with a price target of $15, down from $18. The firm cites valuation grounds for the downgrade. Even given the “benefit of doubt on resilient growth and healthy margins” near term, Afya’s valuation is “demanding” given: Citi’s fundamental concerns on the long-term sustainability of its margins and returns, the analyst tells investors in a research note. Further, the controller’s buyback program should be terminating soon, adds Citi.