** Morningstar expects student volumes to rebound for Australia's IDP Education IEL.AX on anticipation of further loosening of immigration policies domestically

** IEL's shares rose about 30% over last week after Australian government increased overall student cap for international students

** Investment research firm highlights that 2026 higher intake of students favours co in both numbers and speed of approvals

** Increased intake raises level at which processing approvals could be delayed, likely leading to higher placements for IDP and benefiting bottom line, Morningstar says

** Morningstar maintains A$17 fair value estimate on co; adds shares seem materially undervalued

** Flags market is understandably fixated on weak-near term student volumes but Morningstar maintains it long-term recovery thesis for co

** Stock down 63.9% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))