Ânima shares are among the biggest falls on B3 after Citi downgrades its recommendation (Image: Facebook/Anima Educação)
In its review of earnings estimates for this and next year, Citi downgraded its recommendation for shares of Anima (ANIM3) from buy to neutral/high risk.
The bank also adjusted the target price from R$5.00 to R$3.20 — which represents a potential appreciation of 21% in relation to the closing price last Monday (24).
Citi reduced its recurring profit estimates by 40% for 2024. For 2025, the cut was 50% in projections.
The review is due to increased financial expenses, including the company's higher debt and high financial costs — mainly from Pravaler, which is Ânima's educational financing system.
The bank's analysts still believe that the growth in financial margins remains below expectations — and the trend is expected to continue until the third quarter of 2024.
With the downgrade, Ânima shares are falling this Tuesday (24) on B3. At around 10:28 am (Brasília time), shortly after trading opened, ANIM3 was down 4.17%, to R$2.53. Follow in Real Time.
What does Citi expect from Anima?
For the third quarter, Citi expects the company to report “moderate” results.
Revenue growth is expected to remain stable, albeit pressured by the decrease in volumes intake (admission or registration process for new students) — approximately 16%.
“This could be partially offset by Inspirali’s pricing discipline and resilience,” the analysts said.