UPDATE: JPMorgan Upgrades GSX Techedu Inc. (GSX) to Neutral

April 7, 2021 6:27 AM EDT
Get Alerts GSX Hot Sheet
Price: $23.52 -6.29%

Rating Summary:
    1 Buy, 6 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 21 | New: 24
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(Updated - April 7, 2021 6:28 AM EDT)

JPMorgan analyst DS Kim upgraded GSX Techedu Inc. (NYSE: GSX) from Underweight to Neutral with a price target of $37.00 (from $60.00).

The analyst comments "We close our UW call on GSX post unprecedented 51% drop in the past seven trading days (vs. SPX’s +4%) or -64% in the past month (vs. SPX’s +6%). Granted, there still exist myriads of uncertainty from both topdown (policy reform for tutoring sector) and company-specific (surprisingly slow growth in 1Q, upcoming 20-F) perspectives, making it difficult to turn outright bullish. That said, well-publicized technical selling pressure should subside sooner or later (if not have already), which alone could push the stock higher near-term to narrow the gap with peers (that have corrected only 5-10% in the past 7 trading days) to some extent. We thus want to lock-in profits from our UW and neutralise our rating."

For an analyst ratings summary and ratings history on GSX Techedu Inc. click here. For more ratings news on GSX Techedu Inc. click here.

Shares of GSX Techedu Inc. closed at $33.40 yesterday.


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