Analysts at Jefferies have initiated assessment on the Australian education services provider, IDP Education (ASX:IEL) by giving it an ‘underperform’ rating and a price target of A$18.

The firm’s multi-year lucrative venture, India to Canada Student Placements, is facing threats from intensifying competition in India and regulatory modifications in Canada.

Jefferies claims its financial estimates for fiscal years 2024-26 concerning IEL’s revenue and adjusted net profit after tax are approximately 7%-8% and 13%-24% lower than consensus estimates, respectively.

With the assessments of 13 analysts taken into account, nine recommend ‘buy’, two recommend ‘hold’ and two suggest ‘sell’.

This sets the median price target at A$27.95 according to LSEG data.

Importantly, IEL’s share value has decreased by 21.7% year-to-date.

IDP Education is an Australian-based company engaged in providing international student placement services.