Analyst Saiyi He of CMB International Securities maintained a Buy rating on New Oriental Education Tech, boosting the price target to $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 6% year-over-year increase in net revenue for the first quarter of fiscal year 2026, aligning with market expectations, while its non-GAAP operating income exceeded forecasts by 4% due to improved operational efficiency and disciplined capacity expansion. Additionally, the management’s guidance for the second quarter indicates a projected revenue growth of 9-12%, driven by the accelerating revenue from the K-12 business segment.
Furthermore, Saiyi He notes the company’s efforts in enhancing profitability and shareholder returns. The non-GAAP operating margin increased by 1 percentage point year-over-year, reflecting effective cost optimization strategies. New Oriental has also announced a cash dividend and a share repurchase program, collectively representing about 5% of its market capitalization, which underscores its commitment to delivering attractive returns to shareholders. These factors, combined with the company’s resilience in revenue growth and strategic use of AI to boost operational efficiency, support the Buy rating.