Goldman Sachs Downgrades Xueda Education (XUE) to Sell

December 11, 2012 9:36 AM EST
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Price: $5.44 --0%

Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Goldman Sachs downgraded Xueda Education (NYSE: XUE) from Buy to Sell with a price target of $2.60 (from $5.40).

The firm comments, "Xueda's 3Q12 results showed below-expectation utilization across its network due to weak demand. We believe the company's rapid expansion was one of its key problems. By 3Q12, Xueda operated 379 learning centers in 73 cities, adding over 100 centers yoy. Whereas the build-out helped support its revenue momentum, 3Q profitability deteriorated both qoq and yoy, despite the low base caused by the consultant commission disruption in 2H11."

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

Shares of Xueda Education closed at $2.70 yesterday.

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