New Oriental Education price target raised to $127 from $66 at Citi

Citi analyst Alice Cai raised the firm’s price target on New Oriental Education to $127 from $66 and keeps a Buy rating on the shares. The company’s fiscal Q3 revenue jumped 60% year-over-year, driven by the K-9 segment, while maintaining flattish non-GAAP EBIT margins at 11.7% due to East Buy’s drag, the analyst tells investors in a research note. The firm we anticipate East Buy’s margins stabilizing as promotional and infrastructure spending normalizes. It keeps New Oriental as its top pick in the K-12 education industry.