Afya Approves New Share Buyback Plan; Street Sees 27% Upside

Afya on Dec.23, announced a new share repurchase program to buy back up to 1,015,844 of its outstanding class A common shares in the open market. Shares of the medical education company rose 2.3% in Thursday’s pre-market trading session.

Afya (AFYA) said that the buyback plan would be initiated on Dec. 24, and will be valid until Dec. 31, 2021. The company intends to use the proceeds of the share sale to execute a stock option program for its executives.

BofA Securities, was appointed as the agent to purchase securities on behalf of the company in the open market.

J.P. Morgan analyst Marcelo Santos recently downgraded AFYA from Buy to Hold with a price target of $32, citing its valuation following the stock’s recent rally. (See AFYA stock analysis on TipRanks)

From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 1 Buy and 1 Hold. The average analyst price target of $31.10 implies upside potential of 27% to current levels.

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