action leads Ibovespa losses by falling 10% after bank recommends sale

action leads Ibovespa losses by falling 10% after bank recommends sale
action leads Ibovespa losses by falling 10% after bank recommends sale

In reviewing its coverage of the education sector, BTG Pactual changed its recommendations for Yduqs (YDUQ3) and Cogna (COGN3), leading to a reaction in shares. COGN3 shares fell by more than 10% and closed the day with a drop of 6.94%, at R$ 2.68, leading Ibovespa’s losses after having the recommendation cut from neutral to sale; YDUQ3 rose 4.5% at the day’s high after being elevated from neutral to purchase, but closed with a drop of 3.35% along with the market.

Cogna’s target price was also reduced by the bank, from R$3.40 to R$2.60. The cut considered the valuation “stretched”, since the company trades at 17.3 times its price-to-earnings ratio (P/E) and 6.1 times its enterprise value ratio (EV). ) on earnings before interest, taxes, depreciation and amortization (EBITDA).

Furthermore, the bank considers that the company’s momentum suggests weaker results, in addition to the risk of negative surprises for the market’s estimates for Cogna. Part of the explanation is that the higher education student base, in general, is expected to slow down.

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With constant growth of 2% to 3% per year for the last 10 years, private industry should remain above average but show less robust growth. The expansion of distance learning (distance learning) courses should also guarantee more robust growth, of more than 6% in the annual comparison.

Yduqs, in turn, in addition to having a purchase recommendation, had its target price raised from R$26 to R$28. The analysis considers that the name presents a good entry point, considering the drop of around 10% in the last month. At the current price, the company presents multiples of 5 times the enterprise value (EV) over earnings before interest, taxes, depreciation and amortization (EBITDA) and 10.5 times the price on profit (P/L).

The company currently offers a combination of solid results momentum, exposure to more resilient markets, with 31% of Ebitda in premium courses, a less expensive capital structure, around twice the net debt over Ebitda and guarantees good prospects generating free cash flow. BTG reinforced that Yduqs has the highest share liquidity among the names present in coverage, at around R$75 million in average daily volume.

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Ânima (ANIM3), in turn, was considered top pick in the sector. According to analysts, the company is on the right track to comply with its debt covenants, in addition to being trading at a discount compared to its peers. The share remained with a “buy” recommendation and the target price rose from R$6 to R$7.

The article is in Portuguese

Tags: action leads Ibovespa losses falling bank recommends sale



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