A Cheer up (ANIM3) could see its net profit jump 576% in the first quarter, to R$99 million, see the Bradesco BBI. Even so, the broker considers that the education company will not have an eye-catching result.
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According to analysts Marcio Osako, Flávia Meireles and Larissa Monte, the numbers will be neutral, due to weak revenue growth and the strong slowdown in the expansion of the Ebitda margin.
“Revenue should grow by just 3%, due to the continuous drop in the main segment (-1%) and the low growth in Inspirali, its vertical in medical courses (6%)”, he states.
The decline in revenue in the main segment is due to the 5% annual drop in admission and enrollment, more than offset by the 4% growth in the average ticket, he argues.
The Ebitda margin should expand 3 percentage points to 32.5%, below the 7.4pp in the second half due to higher marketing expenses and lower dilution of rental costs.
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Is it worth buying Ânima?
O Bradesco BBI took advantage of expectations to review Ânima’s target price. Despite recommending purchase, analysts cut the company’s target price by 24%, from R$8.50 to R$6.50.
“We think the revisions are more than priced in, with shares falling between 20-30% since the release of the 4Q23 results”, he explains.
On the other hand, Bradesco BBI changed its favorite role in the education sector from Ânima to Yduqs (YDUQ3), due:
- more attractive valuation (premium reduction to 6% relative to Ânima’s estimated P/E multiple for 2025), from 30% previously in early February, when we changed our preference;
- lower leverage in a context of more uncertain macroeconomic conditions;
- greater revenue growth dynamics and long-term fundamentals.
Ânima releases its results on May 13th.
Source: Moneytimes