In a report released yesterday, Flavio Yoshida from Bank of America Securities reiterated a Buy rating on Afya, with a price target of $25.00.
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Flavio Yoshida has given his Buy rating due to a combination of factors that highlight Afya’s strong financial performance and strategic initiatives. The company reported a solid second quarter with a net income that surpassed expectations by 8% compared to Bank of America’s estimates and 5% above consensus, despite facing a higher-than-anticipated tax rate. This performance was driven by improved efficiency in selling, general, and administrative expenses across different segments and favorable financial outcomes.
Additionally, Afya’s announcement of a share buyback program, which could affect the liquidity of its shares, reflects confidence in its future prospects. The company’s management has maintained a conservative EBITDA guidance, considering the seasonality of continuing education, yet they have demonstrated resilience by sustaining tuition fees in line with inflation despite increased competition. Furthermore, Afya’s ability to enhance its EBITDA margin and reduce net debt, even after dividend payments, underscores its robust operational efficiency and financial health.
According to TipRanks, Yoshida is ranked #7323 out of 9896 analysts.
In another report released on August 6, Morgan Stanley also upgraded the stock to a Buy with a $17.50 price target.