Citi bolsters bullish rating on New Oriental Education & Technology Group

A hefty cash pile and easing regulations reinforce an optimistic outlook on New Oriental & Technology Group from Citi.

$New Oriental Education & Technology(EDU)$

Citi analyst Mark Li indicated that calls with management suggest stable policy from regulators after severe crackdowns in recent years. Additionally, high school after hours education is expected to continue to grow without the interference of state regulators while overseas education also continues uninhibited.

He added that the company’s considerable cash pile, totaling over $4B, is greater than its market cap.

“Peer TAL Education (TAL) has announced a $1B buyback plan, and our analysis indicates EDU has a good track record on share buybacks/special dividends,” Li wrote. “Hence, we believe EDU’s potential to unlock its ample net cash would be the next catalyst to drive share price.”

$TAL Education Group(TAL)$

Given this expectation, he raised his price target from $23 to $32 alongside a “Buy” rating on shares. The stock closed over 100% gain from its May low.

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Comments

Michelle Ong
2022-07-04
Michelle Ong
Like back thanks
Magneto
2022-07-05
Magneto
Okay.
BenWong78
2022-07-05
BenWong78
😀
hynne
2022-07-04
hynne
o
LilGhost
2022-07-04
LilGhost
👌
themonkey
2022-07-04
themonkey
ok

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Additionally, high school after hours education is expected to continue to grow without the interference of state regulators while overseas education also continues uninhibited.</p><p></p><p>He added that the company’s considerable cash pile, totaling over $4B, is greater than its market cap.</p><p></p><p>“Peer TAL Education (TAL) has announced a $1B buyback plan, and our analysis indicates EDU has a good track record on share buybacks/special dividends,” Li wrote. “Hence, we believe EDU’s potential to unlock its ample net cash would be the next catalyst to drive share price.”</p><p><a href=\"https://laohu8.com/S/TAL\">$TAL Education Group(TAL)$</a> </p><p><span style=\"color:rgba(208,2,27,1);\"><b>Given this expectation, he raised his price target from $23 to $32 alongside a “Buy” rating on shares. 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Additionally, high school after hours education is expected to continue to grow without the interference of state regulators while overseas education also continues uninhibited.</p><p></p><p>He added that the company’s considerable cash pile, totaling over $4B, is greater than its market cap.</p><p></p><p>“Peer TAL Education (TAL) has announced a $1B buyback plan, and our analysis indicates EDU has a good track record on share buybacks/special dividends,” Li wrote. “Hence, we believe EDU’s potential to unlock its ample net cash would be the next catalyst to drive share price.”</p><p><a href=\"https://laohu8.com/S/TAL\">$TAL Education Group(TAL)$</a> </p><p><span style=\"color:rgba(208,2,27,1);\"><b>Given this expectation, he raised his price target from $23 to $32 alongside a “Buy” rating on shares. 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He added that the company’s considerable cash pile, totaling over $4B, is greater than its market cap. “Peer TAL Education (TAL) has announced a $1B buyback plan, and our analysis indicates EDU has a good track record on share buybacks/special dividends,” Li wrote. “Hence, we believe EDU’s potential to unlock its ample net cash would be the next catalyst to drive share price.” $TAL Education Group(TAL)$ Given this expectation, he raised his price target from $23 to $32 alongside a “Buy” rating on shares. 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