New Oriental Education upgraded to Buy from Neutral at Citi

Citi upgraded New Oriental Education (EDU) to Buy from Neutral with a $50 price target The firm sees “compelling upside” from the company’s “domestic mix-shift story.” The mathematics of New Oriental’s business transformation “are substantial,” the analyst tells investors in a research note. Citi models domestic K-9 and senior high combined will grow from 45% to 55% of revenue by fiscal 2026, creating a multi-year earnings tailwind. The firm says that despite this favorable mix shift, New Oriental currently trades at “only” 17-times next 12 months price-to-earnings after the recent rally.