Afya initiated with a Sell at Goldman Sachs

Goldman Sachs initiated coverage of Afya (AFYA) with a Sell rating and $16 price target Afya is the largest medical education ecosystem in Brazil, the analyst tells investors in a research note. The firm says Afya’s integration skills, solid brands, scale and relatively light balance sheet position the company as the main consolidator in the market, but it remains cautious on the economics of undergrad medical seats. AFYA’s valuation premium to the rest of the sector is stretched at current levels, contends Goldman.