2009 Media Releases

March 17, 2009

Deutsche Bank initiates coverage of Navitas Limited

Deutsche Bank has initiated coverage of pre-university and university programs provider for domestic and overseas students Navitas Limited (ASX: NVT) with a Hold recommendation.

Research analyst Philip Pepe initiated coverage with an A$2.50 twelve month price target.

Mr Pepe said, “Navitas provides exposure to the education sector, which has experienced strong growth in international student demand since 2002. We believe Navitas is well-placed to profit from this trend going forward.”

According to Deutsche Bank research, Navitas has significant exposure to international students from China and India, particularly in Australia. Students from these two countries represented 41% of international student enrolments in Australia in 2008 with growth in Chinese students studying in Australia averaging 17.6% per annum since 2002 and growth in Indian students studying in Australia averaging 43.1%. Growth in international students generally studying in Australia has averaged 12.1% per annum over this same period.

“While we see risks such as contract renewal with affiliated universities and competition from other countries, we believe Navitas is a high quality business with strong academic brands that are well-positioned to benefit from the growth in international students choosing to study in Australia. In addition, we are comfortable with Navitas' earnings outlook given the recent increase in the number of international students enrolling in Australian-based courses,” said Mr Pepe.

Navitas Limited is a leading provider of pre-university and university pathway programs for domestic and overseas students, operating in five mainland Australian states and internationally. These programs are offered on a full-fee paying basis to students in association with Associated Universities, in a predominantly on-campus model, providing the opportunity for students to enter the Associated University's courses and obtain a university degree.

For further information, please contact:

Camilla Anderson (02) 8258 2731


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