AFYA Should I Buy
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Afya Ltd is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock has experienced a significant price drop recently, and analysts have downgraded the stock due to uncertainties and margin pressures. While the company has shown strong financial growth in its latest quarter and has positive developments in medical seat expansions, the current market sentiment, technical indicators, and options data suggest a cautious approach.
The MACD histogram is positive but contracting, indicating weakening momentum. RSI is neutral at 30.212, and moving averages are converging, showing no clear trend. The stock is near its support level of 14.617, with resistance at 15.725. Overall, technical indicators suggest a neutral to slightly bearish outlook.
The company is committed to enhancing its medical education ecosystem, which could support long-term growth.
The stock has been downgraded by multiple analysts due to uncertainties in a political year, margin pressures, and less benefit from Brazil's easing cycle compared to peers. The recent price drop of -6.58% in regular trading and -1.48% in pre-market indicates weak sentiment.
In Q3 2025, Afya reported strong financials with revenue up 10.38% YoY, net income up 29.33% YoY, EPS up 29.77% YoY, and gross margin up 3.12% YoY. These figures indicate solid growth and profitability.
Recent analyst ratings have been downgraded from Buy to Neutral by BTG Pactual, UBS, and JPMorgan, with price targets lowered to $16-$22. Analysts cite higher investments, margin pressures, and uncertainties as reasons for the downgrades.
