The shares of the educational group Yduqs (YDUQ3) ended the morning of this Tuesday (21) among the biggest lows of the day, with a drop of 3.96%, at R$ 13.10, around 12:15 pm.
The owner of Estácio and Ibmec colleges suffers from high interest rates, inflation and the increase in cases of covid, according to market analysts.
“This situation we are going through affects all companies in the education sector”, says Marcio Loréga, chief analyst at PagBank. So much so that the assets of the competitor, Cogna (COGN3), owner of Kroton, were the second biggest drop at the same time, with a drop of 3.46%, at R$ 2.23.
With the income of families being squeezed by the general rise in prices and the increase in interest rates, it is difficult for these companies to attract more students, explains Loréga.
The increase in cases of covid-19 also hinders. Brazil has maintained an upward trend in infection for 23 days. This hinders the resumption of face-to-face teaching, which is the flagship of these educational institutions. “All this helps to reduce the premiums to shareholders, who end up selling the shares”, says the analyst.
And what to do with the shares?
BTG recommends holding on: if you have it, better not sell it now. If not, stay away from the paper. The bank points out that, in addition to all the reasons related to interest and inflation, there is still great competition in this sector, which causes the average ticket charged to students to fall.
XP, however, believes that the growth of the digital education segment can benefit the shares and recommends a purchase for Yduqs with a target price of R$ 33.70 per share for the end of 2022.