Afya upgraded to Buy from Neutral at UBS

UBS analyst Andre Salles upgraded Afya (AFYA) to Buy from Neutral with a price target of $19, down from $19.50. JPMorgan also upgrade the stock this morning. UBS sees “strong momentum” for the company’s business, with “healthy” demand for medical courses. Meanwhile, Afya’s cost cutting initiatives should maintain its EBITDA margin at a fairly stable 45%, the analyst tells investors in a research note. The firm believes current share levels offer an opportunity to buy a “high quality, low leveraged and high return name” in the Brazil education industry.