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Citi: Initiates a "shareholding" rating on New Oriental-S, with a target price of HK$66.
JPMorgan released a research report stating that new oriental-S (09901) core business continues to show strong growth, with revenue and operating profit expected to increase by approximately 30% and 40% respectively in the 2025 fiscal year. The bank rates new oriental as 'shareholding' and sets a target price of HK$66. The report points out that new oriental has exceeded its revenue guidance for the past 9 quarters, but the margin of exceeding guidance has narrowed in recent quarters, disappointing investors. In addition, new oriental's profit margin has been below market expectations in the past 3 quarters. JPMorgan noted that new oriental will enter a new quarter.
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