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 $16, down from $17.50. The firm says that while the company’s medical undergrad operation remains solid, other structural trends point to a more negative outlook. Afya faces already mature seats, which is leading to slower volume growth, and investments needed to scale its other businesses, likely affecting margins, the analyst tells investors in a research note.