S&P/ASX 200 Index (ASX: XJO) share IDP Education Ltd (ASX: IEL) has had a year to forget.
Shares in the ASX 200 listed language testing and student placement provider enjoyed a welcome day of gains yesterday, closing up 6.49% at $9.35 each.
But 12 months ago those same shares were trading for $19.70, leaving the IDP Education share price down a painful 53% in a year.
While far from making up for those losses, the IDP Education share price also trades on a partly franked dividend yield of 2.0%.
Looking ahead, however, Baker Young's Toby Grimm believes IDP Education presents "long term value" after the big sell-down (courtesy of The Bull).
Here's why.
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ASX 200 share outpacing peers
"The shares recently hit five-year lows on the back of first half results in fiscal year 2025," said Grimm, who has a buy recommendation on the ASX 200 share.
Digging into those results, he noted, "Revenue of $475.4 million was down 16% on the prior corresponding period, driven by a decline in student placement and English language testing volumes."
But Grimm believes the future is looking brighter for the IDP Education share price. He said:
We're encouraged by the company's operational performance in difficult conditions, sustaining growth and profitability ahead of its peers.
We see long-term value and quality in this global leader and suggest investors consider accumulating the stock around current levels.
Fundamentals remain strong
Also profiling IDP Education on The Bull this week, Red Leaf Securities' John Athanasiou said the ASX 200 share is a hold, for now.
"The company provides international student placements. It co-owns the world's most popular English language tests," he said.
Athanasiou noted that, "Restrictions on student and other migrant visas across key markets impacted the [half year] result."
According to Athanasiou, the ASX 200 share is a "reasonable hold" for long-term investors. He said:
Despite near-term headwinds, IEL's long term fundamentals remain strong, underpinned by structural growth drivers in international education.
The company has a clear strategy and disciplined investment approach, which positions it for a long-term recovery. If regulatory pressures ease and demand rebounds, IEL could regain momentum, making it a reasonable hold for investors with a long-term outlook.
Commenting on IDP Education's half-year performance on the day of the results release, CEO Tennealle O'Shannessy said:
We have succeeded in optimising key controllables including market share, cost and average price, underpinned by our unwavering focus on the student experience, to offset the impact of factors outside our control, such as government policy.
