Vasta Platform downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Vasta Platform to Underweight from Equal Weight with a price target of $3, down from $4.50. The analyst believes the Brazil education services sector may stay at lower multiples. The firm sees negative momentum for the sector, saying demand sustainability is uncertain, players’ high leverage is persisting, and pressures continue on regulation. It cites a limited long-term growth outlook for the downgrade of Vasta Platform.