UPDATE: Brean Capital Upgrades New Oriental Education (EDU) to Buy

(Updated - October 21, 2015 11:23 AM EDT)

Brean Capital upgraded New Oriental Education (NYSE: EDU) from Hold to Buy with a $32 price target.

Analyst Anne Shih commented, "EDU reported strong FY1Q16 results, with its better-than-expected performance following previous consecutive quarters of solid execution in its K12 initiatives. Furthermore, the company provided positive guidance for the second quarter as well as setting expectations for margin recovery beginning in FY2017. We are encouraged by the company’s consistent acceleration in enrollments in the rapidly growing K12 market, momentum for continued growth in this category driven by industry trends and company strategy, positive revenue guidance, and importantly, anticipation of margin recovery given improving utilization, operational leverage, and deceleration in its online investments in FY2017. Consequently, we are upgrading our rating to Buy from Hold, and initiate a target price of $32 based on our CY2016 non-GAAP EPS of $1.59 and P/E of 20x. We believe New Oriental’s strong brand and extensive network should help support the company in making sustained gains in market share in the K12 category."

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 $24.98 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform
• New Oriental Announces Results for the Third Fiscal Quarter Ended February 29, 2024
• New Oriental Education (EDU) PT Raised to $127 at Citi