Analyst Saiyi He from CMB International Securities maintained a Buy rating on New Oriental Education Tech and decreased the price target to $70.00 from $76.00.
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Saiyi He has given his Buy rating due to a combination of factors that highlight New Oriental Education Tech’s strong financial performance and strategic initiatives. The company reported a significant increase in net revenue and non-GAAP net income for 4QFY25, surpassing both company guidance and Bloomberg consensus estimates. This growth is attributed to successful cost optimization efforts across various business lines.
Looking ahead, despite the anticipated deceleration in revenue growth due to macroeconomic uncertainties and increased competition, New Oriental is focusing on profitability and shareholder returns. The company has introduced a new three-year shareholder return plan, committing to distribute at least 50% of net income through dividends or share repurchases. Additionally, the company’s advancements in AI and its expanding tourism business further support its potential for sustainable growth and enhanced profitability.
He covers the Communication Services sector, focusing on stocks such as Bilibili, Baidu, and Meta Platforms. According to TipRanks, He has an average return of 16.3% and a 62.88% success rate on recommended stocks.