New Oriental Education gains after Citigroup hikes PT

New Oriental Education & Technology

27/09/2023 12:19

** U.S.-listed shares of New Oriental Education  EDU.N 
gain 3.9% to $58.22 premarket after Citigroup raises PT
    ** Citigroup hikes PT from $42 to $66, a 17.8% upside to
stock's last close
    ** Citi raises FY24 earnings forecast by over 19% based on
recovery in overseas education demand post-pandemic and new
business like non-academic tutoring in peak summer season
    ** Forecasts high double-digit growth for senior high school
business which is exempt from China's "double reduction"
measures (for homework)
    ** Projects EDU's K9 tutoring business to be main growth
driver, exceeding 50% YoY; sees overseas test prep at 30% growth
    ** All 17 analysts covering EDU rate it "buy" or higher,
median PT $64.20 - LSEG data 
    ** EDU up 61% YTD, through last close

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))