Assessing New Oriental Education: Insights From 4 Financial Analysts
Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on New Oriental Education (NYSE:EDU) in the last three months.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 1 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 1 | 1 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $59.25, along with a high estimate of $75.00 and a low estimate of $50.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 8.85%.
Decoding Analyst Ratings: A Detailed Look
The perception of New Oriental Education by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michelle Fang | Citigroup | Lowers | Buy | $75.00 | $77.00 |
| Timothy Zhao | Goldman Sachs | Lowers | Neutral | $50.00 | $58.00 |
| Michelle Fang | Citigroup | Lowers | Buy | $50.00 | $77.00 |
| DS Kim | JP Morgan | Raises | Overweight | $62.00 | $48.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to New Oriental Education. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of New Oriental Education compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of New Oriental Education's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into New Oriental Education's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on New Oriental Education analyst ratings.
Get to Know New Oriental Education Better
New Oriental Education & Technology is a prominent private education provider in China, offering a wide array of educational services. These include overseas test preparation and consulting services, high school academic tutoring, nonacademic tutoring, and intelligent learning systems and devices. Additionally, the company holds a 57% ownership stake in East Buy, a leading player in the livestreaming e-commerce market.
Understanding the Numbers: New Oriental Education's Finances
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Over the 3M period, New Oriental Education showcased positive performance, achieving a revenue growth rate of 5.08% as of 31 May, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: New Oriental Education's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.57%, the company may face hurdles in effective cost management.
Return on Equity (ROE): New Oriental Education's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.19%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): New Oriental Education's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.09%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: New Oriental Education's debt-to-equity ratio is below the industry average. With a ratio of 0.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Core of Analyst Ratings: What Every Investor Should Know
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.