Jefferies has reported a downside risk for IDP Education (ASX:IEL), predicting a revenue fall due to decreased language testing volumes.

The firm foresees a 20% and 16% decline in IELTS volumes (The International English Language Testing System) for 1H24 and 2H24, respectively, which is expected to negatively impact IDP Education (ASX:IEL)’s revenue.

A projected downside risk of 7% and 8% to 1H and 2H FY24 revenue, respectively, has been identified by Jefferies for the company.

The brokerage has expressed an ‘underperform’ rating for the company, while holding the price target at A$18.00.

A recent LSEG data reveals varied sentiments among analysts: nine out of 14 analysts rate the stock as ‘buy’, two as ‘hold’ and three recommend ‘sell’ or lower.

The median price target stands at A$27.9.

Recently, share prices of IDP Education (ASX:IEL) nosedived to as low as 0.8%, and are overall down by 21.8% for this year until last close.

IDP Education is an Australian firm specializing in international student placements and English language testing services.