Buffett Education, page-2

Yesterday 6th of May

Morgan Stanley rates IEL as Overweight (1) -

According to IDP Education's latest update, cash at March 31 was up to $299m from $293m in the first half. For IELTS, the company opened 58 new computer-delivered centres and has a further 44 scheduled for the second half.

Unsurprisingly, suggests the broker, no guidance was provided.

Overweight retained with a target of $30. Industry view: In-line.

Target price is $30.00 Current Price is $22.38 Difference: $7.62
If IEL meets the Morgan Stanley target it will return approximately 34%(excluding dividends, fees and charges).

Current consensus price target is $30.44, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 13.20 cents and EPS of 21.00 cents. At the last closing share price the estimated dividend yield is 0.59%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 106.57. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.8, implying annual growth of -12.8%. Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 0.8%. Current consensus EPS estimate suggests the PER is 93.1.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 19.50 cents and EPS of 40.00 cents. At the last closing share price the estimated dividend yield is 0.87%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.95. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 41.8, implying annual growth of 83.3%. Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 1.4%. Current consensus EPS estimate suggests the PER is 50.8.