Laureate: Time for a Pause; Downgrade to Neutral on Valuation, Establish $41 Dec-27 PT

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Laureate: Time for a Pause; Downgrade to Neutral on Valuation, Establish $41 Dec-27 PT

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

03 August 2026

Laureate ▼Neutral

Previous: Overweight

Time for a Pause; Downgrade to Neutral on Valuation, LAUR, LAUR US

Price (31 Jul 26):$38.31

Establish $41 Dec-27 PT Price Target (Dec-27):$41.00

We downgrade Laureate to Neutral from Overweight, mostly on valuation, which LatAm Technology & Telecom /

we believe reflects well the company's current growth and cash generation Education

prospects of the company. Laureate had a strong run, with shares up 70% in one Marcelo Santos, CFA AC

year vs 39% for the MSCI LatAm Index, and now trades at 15x P/E’27E, which we (55-11) 4950-3708

find adequate for 10% earnings CAGR’27-30, or 19% EPS considering future marcelo.p.santos@jpmorgan.com

buybacks. Moreover, we see a consensus that is well calibrated, mostly in line with Livea Mizobata

our estimates at all metrics. We suggest investors wait for a better entry point, and (55-11) 4950-3604

for the more risk-tolerant ones, to look at opportunities in Brazilian Education, livea.mizobata@jpmorgan.com

where Yduqs should generate ~26% FCF yield for both 2026E and 2027E. Victoria Antonello

(55-11) 4950-3703

• Laureate offers a good combination of FCF and growth... We continue to victoria.antonello@jpmorgan.com

like Laureate’s business, and do not see a deterioration in fundamentals. Banco J.P. Morgan S.A.

Essentially, we expect it to keep delivering 6-8% growth in local currency over

the coming years coupled with 0.3-0.5pp of margin expansion, and convert a Key Changes (FYE Dec)

relevant amount to cash, which should flow to shareholders as share buybacks. Prev Cur Δ

Moreover, we expect its regulatory and competitive environment to remain Adj.