IDP Education (ASX:IEL) is expected to have a broader recovery in student placement volume in fiscal 2027 as the Australian government's policy continues to imply a positive fiscal-year outlook despite near-term weakness, Jefferies said in a note on Tuesday.

Australian higher-education primary offshore visa grants indicate a slowing decline for fiscal 2026 year-to-date, improving from a double-digit to a single-digit contraction.

The investment firm said this is the first time the year-to-date data has come ahead of consensus. However, it remains below Jefferies' estimates.

Jefferies retained its buy rating and price target of AU$7.90 on IDP Education.

IDP Education's shares were down almost 1% in recent Wednesday trade.