Brokers' take

Overseas Education Ltd (OEL) | Buy (initiate) April 23 close: S$0.335 Target price: S$0.46 UOB Kay Hian, April 23

OEL has an excellent track record in keeping its operations, financials and dividends in good shape, despite a huge decline in student numbers after its shift to its new campus in Q3 2015 due to poorer accessibility.

We expect 2019 to be the third consecutive year of recovery with net profit growth of 11.2 per cent year-on-year (yoy), as the rate of decline in student numbers continues to narrow while significant cost savings from loan refinancing kick in.