IDP Education's (ASX:IEL) lowered fiscal year student placement and language testing volumes prompted a reduction in the company's price target, according to a note by UBS.
On Tuesday, IDP Education said it expects fiscal year student placement volumes to decline by 28% to 30%, and language testing volumes to drop by 18% to 20%, due to policy uncertainties.
The company expects adjusted full fiscal year earnings before interest and taxes will be in the range of AU$115 million to AU$125 million and said cost control measures will lower second-half overheads by about 5% year-on-year.
Policy uncertainty impacted its student enrolment pipeline and conversion rates in May and June, the company added.
The firm expects policy uncertainty to persist in the fiscal year 2026 and is reviewing long-term costs, productivity, investment, and commercial strategies.
UBS has a buy rating on IDP Education with a AU$4.95 price target.
Shares of the company fell 3% at market close.
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