Insights

Why IDP Education (ASX:IEL) shares are on watch Tuesday

The international education services provider’s immediate business has been ravaged by COVID-19 and the Delta strain. So why are these experts so bullish?
The post Why IDP Education (ASX:IEL) shares are on watch Tuesday appeared first on The Motley Fool Australia. –

IDP Education Ltd (ASX: IEL) shares will be keenly monitored on Tuesday morning after a round of endorsements about their prospects.

Prior to this morning’s open, UBS brokers raised their price target for the international education provider by 13%.

They are now forecasting the IDP share price to hit $36.40. That’s an 11% premium on Monday’s closing price of $32.72.

The stock is already up close to 60% for the year and more than 20% over the past month.

Tribeca Investment Partners portfolio manager Jun Bei Liu told The Motley Fool’s Ask A Fund Manager on Tuesday morning that IDP Education has plenty more growth to come.

“It has gone up a lot but, in terms of its earnings, it has yet to return,” she said. 

“In the next 12 months, we do expect meaningful returns for this company, as its earnings grow higher and its multiple continues to expand.”

Why the ducks are all lined up for IDP shares

Liu revealed that IDP shares are among the 5 biggest positions her fund holds currently.

Australian universities, as one of the big beneficiaries of IDP’s services, previously held more than 40% ownership of the company.

But when COVID-19 difficulties hit the tertiary sector, Liu’s team bought up big.

“They sold down some parts of their stake and then we took advantage of it,” she said.

“We have always liked this company. It’s a very high-quality company exposed to global student placements.”

Liu reminded investors IDP doesn’t just do business bringing in foreign students into Australia.

“The amazing thing about this company is that it’s not just students coming to Australia. It’s going global,” she said. 

“It has huge exposure across the UK, Canada, and many other countries. Essentially just leveraged to that global movement from students wanting to be educated in some of the top universities.”

Of course, IDP’s short-term numbers have taken a massive hit due to restrictions on international travel. But Liu has faith that IDP is a strong post-pandemic recovery story.

“Once we have all the vaccinations or vaccination passports, these students will return.”

Based on the current IDP share price, the company commands a market capitalisation of around $9.1 billion.

The post Why IDP Education (ASX:IEL) shares are on watch Tuesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in IDP Education right now?

Before you consider IDP Education, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IDP Education wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 ASX shares ready to explode after COVID: expert

2 ASX growth shares that could be buys

Brokers name 2 ASX 200 shares to buy

2 COVID-hit ASX shares that could be buys now

Here are the top 10 ASX 200 shares on Monday

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!