Fred Mendes, an analyst from Bank of America Securities, maintained the Buy rating on Afya (AFYA – Research Report). The associated price target is $24.00.
Fred Mendes has given his Buy rating due to a combination of factors, including Afya’s strong financial performance and promising future outlook. The company reported impressive double-digit growth in revenues and an adjusted EBITDA margin that exceeded expectations. This robust performance is further supported by a positive guidance for 2025, indicating continued growth in net revenues and an expansion in EBITDA margins.
Additionally, Afya’s strategic initiatives, such as its commitment to inorganic growth through acquisitions and the introduction of dividend payments, demonstrate a solid business strategy. The company’s ability to maintain tuition fee adjustments above inflation for upperclassmen and its effective cost management, as evidenced by the integration of mergers and acquisitions and the restructuring of its Medical Practice Solutions, further reinforce the Buy rating. These factors collectively suggest that Afya is well-positioned for continued success, justifying the positive outlook and Buy recommendation.
AFYA’s price has also changed slightly for the past six months – from $16.250 to $16.220, which is a -0.18% drop .