IDP Education Ltd (ASX: IEL) shares have been sold off over the last 12 months.
Concerns over the loss of its language testing monopoly in Canada and student visa changes have led to its shares losing almost 40% of their value.
This leaves the ASX growth stock trading within a whisker of its 52-week low of $18.29.
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Is this ASX growth stock a buy?
While this decline is disappointing, the team at Goldman Sachs believes that investors should be chomping at the bit to snap up its shares while they're down.
In response to the company's recent half-year results release, the broker has retained its buy rating with a $26.60 price target.
Based on the current IDP Education share price of $18.55, this implies potential upside of 43% for investors over the next 12 months.
In addition, Goldman expects a 46 cents per share dividend in FY 2024. This represents a modest but attractive 2.5% dividend yield, boosting the total potential return beyond 45%.
What did the broker say about IDP Education?
The broker believes that the ASX growth stock is going to be a stronger business when the dust settles on recent industry events.
It then expects IDP Education to go through a period of very strong earnings growth. It explains:
IEL is likely to emerge through this period of short-term regulatory tightening with a more diversified business and stronger SP market position to capitalise on the long-term structural growth in international education, setting up the company for multi-year mid-teens earnings growth. On that basis, the shares represent attractive value, and we reiterate Buy.
All in all, the broker appears to believe it could be a great option for investors that are willing to be patient.
