Citigroup upgrades Afya to Buy from Neutral, lowers price target to $12 from $16

Afya (AFYA) reported Q3 EPS of R$2.08, beating estimates by R$0.11, but revenue of R$985.16M fell short of the R$1.01B consensus. The stock is down 25.36% over the last 3 months and 30.39% over the last 12 months. InvestingPro rates Afya's financial health as 'great performance'.

Afya Limited reported Q3 2026 revenue of R$985.2M, up 6.1% YoY, and Adjusted EBITDA of R$433.8M, up 8.7%. Nine-month net income rose 6.9% to R$634.0M. The company reaffirmed its full-year 2026 guidance. The next catalysts are shareholder and regulatory decisions on its proposed merger with Yduqs.

Afya Limited reported 9M26 revenue of R$2,970M, net income of R$634M, and FCFE of R$629M, with a 45.5% adjusted EBITDA margin. Medical practice users declined 4% YoY, according to the company.

Afya Ltd (AFYA) furnished an SEC Form 6-K — earnings release. Afya Limited Announces Third Quarter and Nine Months 2026 Financial Results Strong Cash Conversion and Continued Earnings Growth Full-Year 2026 Guidance Reaffirmed Belo Horizonte, Brazil, November 12, 2026 – Afya Limited (Nasdaq: AFYA; B3: A2FY34) (“Afya” or the “Company”), the l

BofA upgraded Afya (AFYA) to Buy, lowering its price target to $16. The firm cited Afya's resilient student base, low leverage, and recent exam rule changes as reasons. Afya trades at $10.24, near its 52-week low, with a 6.32 P/E ratio and 30% free cash flow yield. Afya reported 6% Q2 and 7% H1 revenue growth, with net income rising 14% and 7% respectively. JPMorgan also upgraded Afya to Overweight, expecting merger synergies.

Afya (NASDAQ:AFYA) announced a merger with Yduqs, expecting BRL 2.2B in synergies. The companies will operate independently until integration. Afya reported 21% revenue and 22% EBITDA growth from 2021-2026, returning BRL 1.1B to shareholders. The merger could expand Afya's medical education pipeline and improve trading liquidity.