Afya downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Afya (AFYA) to Underweight from Equal Weight with a price target of $17, down from $19. The Brazil education sector is facing regulatory headwinds and margin constraints, the analyst tells investors in a research note. The firm says fully online courses are face declining demand, while hybrid models are holding up. For Afya, Morgan Stanley sees more potential catalysts for downside than upside, saying the increase in seat supply should add pressure to sector prices. It downgrades the shares on valuation.