Afya makes a strategic transfer by shopping for medical colleges within the Northeast, says Goldman
Education company will pay BRL 825 million for Unit, from Alagoas, and Fits Jaboatão dos Guararapes, from Pernambuco
Biggest acquisition since the IPO on Nasdaq in 2019, the purchase of Unit (AL) and Fits Jaboatão dos Guararapes (PE) is consistent with the company’s plan. Afya (AFYA)according to analysts Goldman Sachs. In the afternoon of this Friday, 14, the shares retreated 7.62%, to US$ 13.22.
Afya announced on Thursday, the 13th, the purchase of two medical schools in the Northeast for R$ 825 million, about 11% of their market value. The acquisitions increase the number of new Afya medical students by 340 seats per year. There will be 140 new vacancies in the Alagoas operation and 200 in Pernambuco. The acquisition is still pending regulatory approval.
Analysts note that the company’s projection for 2022 implies a EV/Sales multiple of around 4.4x for acquired assets. Afya is currently trading at 3.9x and the bank’s revenue expectation for the company is BRL 2.38 billion for 2022.
“In a context of high interest rates and strong investor focus on results and cash flow metricswe see the units to be acquired with greater exposure to undergraduate medical courses as a strategic positive point“, write the analysts.
Goldman Sachs maintained its buy recommendation with a price target of $13.5.