Susquehanna Boosts Target on New Oriental Education (EDU) to $85

May 8, 2008 9:46 AM EDT

Susquehanna raised their price target on New Oriental Education & Technology (NYSE: EDU) from $77 to $85, reiteratingner their Positive rating, citing strong initial ramp in all-subject training.

Analyst Adele L. Mao said, "Given EDU's brand equity, teaching expertise, and financial resources, we believe the company can quickly become a formidable player in this area. Furthermore, we expect significant operating leverage from the company's established national school network. With EDU shares appreciating 15% since its earnings report in mid-April, we expect some level of profit taking to take place. That said, for long-term investors, we believe EDU's initiatives in all-subject training represent new revenue drivers and could bring significant upside to student enrollment in the next few years. We continue to view EDU as the top name in China's thriving supplemental education market, and a stock to own in the China portfolio for the long run."

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