Wells Fargo Says This Stock Could Double, New Oriental Education (EDU)

September 21, 2012 2:30 PM EDT
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Price: $48.19 -0.5%

Rating Summary:
    11 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 3
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Today analyst at Well Fargo reiterated their Overweight rating and $24 to $31 price target on New Oriental Education & Technical Group, Inc. (NYSE: EDU).

Analysts said they think New Oriental provides a high-value, culturally-prized product. Analyst also said they expect the current SEC-related overhang to be resolved favorably for New Oriental.

"Because the nature of the SEC inquiry involves an accounting issue (in this case, revenue recognition) we expect it to be resolved definitively in a timely manner," said analyst Trace A. Urdan.

"While increased concern regarding the use of Variable Interest Entities (VIE) is understandable, we think it highly unlikely that the SEC will completely disavow the practice, and believe that the agency will instead require some accommodation that enhances protections for EDU shareholders," added Urdan.

For an analyst ratings summary and ratings history on New Oriental Education click here. For more ratings news on New Oriental Education click here.

Shares of New Oriental Education closed at $13.81 yesterday.

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