Daiwa upgrades China education sector view to Positive

Daiwa upgraded the firm’s view on the China education sector to Positive from Neutral citing improving industry growth visibility. Investors increasingly like the post-regulation recovery and growth visibility of China tutoring stocks, the analyst tells investors in a research note. The firm says earnings surprises will be driven by faster capacity expansion and operating leverage, creating “major share-price catalysts” for 2024. Daiwa reaffirmed Buy ratings on New Oriental (EDU) and TAL Education (TAL).