Goldman Sachs has released a research report indicating an upward revision of the target price for EAST BUY (01797) from HK$12.4 to HK$13.6. This adjustment reflects the company's profit forecast and the fourth-quarter results of New Oriental Education & Technology Group (09901). The investment firm has maintained its "Sell" rating on the stock.
The bank has raised its revenue forecasts for EAST BUY for the fiscal years 2026 to 2028, ending May 31, by 4% to 16%, attributing the increase to higher gross merchandise volume. However, the adjusted net profit forecasts have been adjusted downward by 8% for fiscal 2026, and upward by 2% and 4% for fiscal 2027 and 2028 respectively, reflecting higher selling expenses and share-based compensation costs.
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