IDP Education (ASX:IEL) has been unfairly sold-off in 2024

Marc Kennis Marc Kennis, June 7, 2024

IDP Education (ASX:IEL)

Talking on Ausbiz on 7 June 2024, our own Stuart Roberts addresses the recent slump in shares of IDP Education (ASX: IEL), Australia’s leading listed international education services provider. He asserts that while restrictions on student numbers are currently affecting IDP’s bottom line, he considers the decline overdone.

He anticipates IDP Education shares will become a ‘screaming buy’ at the right price point. He conveys his optimism by stating that IDP, being a global leader in education services, is prepared to seize market share from its competitors as international education re-emerges as a significant export for countries like Australia, the UK, US, and Canada.

 

We need highly skilled migrants

Stuart moves the discussion towards the potential impact of migration policy changes on companies. He provides that the proposed reduction in migration rates, as championed by potential future leaders like Australia’s Peter Dutton, could stunt the growth of tech companies relying on overseas skill. Emphasising the global nature of Tech, he estimates that the talent acquisition hurdle presented by reduced migration could be significant for companies like Xero (ASX: XRO), REA (ASX:REA) and Wisetech (ASX:WTC). Nonetheless, he predicts these companies’ growth over time, albeit with concerns over the ability to afford required talent.

 

We like Tech as long as it can grow cost effectively

Finally, Stuart shares his perspective on REA Group, Wisetech, and Xero. Expressing a bullish stance on Aria Group due to an uptick in user engagement, he also expresses enthusiasm for Wisetech because of its increasingly valuable role in the world’s logistics. Xero, he believes, is steady in the market due to its dominant hold on accountancy solutions for small businesses. However, he finally warns, the real concern lies in whether these companies can continue to grow cost-effectively.

 

Check out the full interview here!

IDP Education

 

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