New Oriental Education initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Timothy Zhao initiated coverage of New Oriental Education with a Buy rating and $85 price target. The analyst believes China’s K-12 education sector is entering a new phase of development to satisfy non-academic learning and self-learning demand as a supplement to in-school education. Industry leaders like New Oriental and Tal will deliver better business resilience and growth visibility given their diverse service offerings, capacity expansion and innovation backed by strong cash positions, the analyst tells investors in a research note. Goldman views New Oriental as a resilient growth story and constant share gainer in China’s education industry.