Wells Fargo Maintains an 'Outperform' on New Oriental Education (EDU); SEC Investigation Should Be Viewed in Context

Wells Fargo maintains an 'Outperform' on New Oriental Education (NYSE: EDU).

Analyst, Trace A. Urdan, said, "New Oriental missed consensus estimates in a seasonally small (and typically variable) quarter based on higher sales & marketing spend than anticipated. ASP strength compensated for enrollment weakness relative to expectations. Guidance for Q1 (typically conservative) is in line with expectations. The announcement of an SEC investigation into an already asserted charge of improper consolidation of financials will likely weaken the shares today but should be viewed in context of widespread SEC effort to resolve open fraud charges into a range of U.S.listed Chinese equities."

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 $22.26 yesterday.

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