The IDP Education (ASX:IEL) share price just hit an all-time high. Here's why

Shares in the Aussie education group have hit a new high watermark on Tuesday

The IDP Education Ltd (ASX: IEL) share price has surged to a new all-time high on Tuesday. Shares in the Aussie student placement group jumped to a new high of $34.36 per share this morning before paring back those gains in the early afternoon.

Here's what is driving the education company's valuation right now.

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Image source: Getty Images

Why the IDP Education share price just hit an all-time high

There were no new ASX announcements from the company to spark this morning's gains. However, momentum has been steadily building in recent weeks.

In fact, the IDP Education share price has now gained more than 15% in the past month alone and 61.2% this calendar year.

Shares in the education group jumped higher despite posting a 36% decline in FY2021 net profit after tax. IDP reported a 10% decline in revenue to $528.7 million with earnings before interest, tax, depreciation and amortisation (EBITDA) down 30% to $101.7 million.

That hasn't stopped the momentum from building behind the IDP Education share price. Those recent gains have been aided by recent broker upgrades.

For example, a recent note out of Goldman Sachs retained a 'Buy' rating on the ASX education share while trimming its price target to $34 per share.

As of this morning, shares in the education group have topped that to hit a new all-time high before paring back those gains.

The notable broker cited hopes for strong Northern Hemisphere operational performance and strengthening Australia and New Zealand performance in the coming years.

Investors appear to still see value in the IDP Education share price if this morning's all-time high is anything to go by.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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