Brazilian Education: Reducing Estimates on a More Flatish SELIC Curve; Upgrade Yduqs to OW, Downgrade Anima to N

Research evidence excerpt

Brazilian Education: Reducing Estimates on a More Flatish SELIC Curve; Upgrade Yduqs to OW, Downgrade Anima to N

J P M O R G A N Latin America Equity Research

22 June 2026

Brazilian Education

Reducing Estimates on a More Flattish SELIC Curve;

Upgrade Yduqs to OW, Downgrade Anima to N

We update our views on Brazilian education companies. We upgrade Yduqs to LatAm Technology & Telecom /

Overweight, from Neutral, on the back of strong free cash flow generation and a Education

discounted valuation, and we downgrade Anima to Neutral, from Overweight, Marcelo Santos, CFA AC

removing its price target, on a flatter SELIC curve (14% at YE27 vs 10% (55-11) 4950-3708

previously — Anima is the company most exposed to the SELIC) and a tougher marcelo.p.santos@jpmorgan.com

operational outlook for 2026. We also reduce our fair value estimates for the other Livea Mizobata

companies under coverage due to the SELIC curve. (55-11) 4950-3604

livea.mizobata@jpmorgan.com

• Yduqs: up to Overweight, on robust FCF and discounted valuation. We see Banco J.P. Morgan S.A.

Yduqs as one of the most compelling risk-reward profiles under our coverage.

Despite the flatter SELIC raising our net financial expense ’27E by 10% and

trimming adj. earnings by 14%, the company’s strong free cash flow generation Valuation - 2026E

continues to support consistent deleveraging from its current 2.1x proportional P/E FCF Y%

ND/EBITDA ex-IFRS16 LTM, providing room for capital returns. With shares AFYA N 7.7 10.5%

trading at a meaningful discount to peers (3.5x P/E’27E vs 4.3x-4.9x ex-Afya),

ANIM3 N 4.3 9.7%

we believe the current valuation more than prices in the SELIC headwind,

COGN3 OW 6.4 10.2%

leaving an attractive entry point even as we lower our Dec-26 PT to R$16.50

SEER3 OW 4.6 15.9% from R$18.50.