While the next 6-9 months will be challenging, UBS assesses the $190m capital raising and incremental debt facilities provide ample flexibility.
While student-related revenue should return to normal after the coronavirus disruptions, the broker envisages some risk to business/immigration related IELTS testing.
Valuation previously held UBS back but now the stock is trading on an FY22 PE estimate of 22.6x the rating is upgraded to Buy from Sell. Target is reduced to $13.95 from $18.90.
Sector: Consumer Services.
Target price is $13.95.Current Price is $14.09. Difference: ($0.14) – (brackets indicate current price is over target). If IEL meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
