Morningstar upbeat on IDP Education as Australia boosts international student cap

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