CICC raises target price on New Oriental Education on business recovery

 

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China International Capital Corporation raised the target price of New Oriental by 10.7% to $31, maintaining an Outperform rating.

New Oriental Education’s earning guidance and share repurchase plan point to the company’s confidence in its business development and profit recovery, said CICC in a note on Friday.

CICC raised the forecast of New Oriental’s revenue in the fiscal years of 2023 and 2024 by 7.5% and 7.9%, respectively, to $2.33 billion and $2.6 billion, citing the recovery of New Oriental’s existing business and rapid development of new business.

It also raised the forecast of the company’s non-GAAP net profit in the two years by 81.8% and 3.7%, respectively, to $89 million and $186 million.