Press Release
Citi Upgrades New Oriental Education & Technology Group, Sees Strong Growth Ahead
June 27, 2025 – New York, NY – New Oriental Education & Technology Group Inc. (NYSE: EDU) has been upgraded by Citi from ‘Neutral’ to ‘Buy’, with a revised price target of $50, reflecting the firm’s optimism about the company’s domestic growth potential.
Citi analysts highlighted that New Oriental’s robust expansion in high-margin segments, K9 and Senior High, which are growing at annual rates of 35% and 11%, respectively, could increase their contribution to revenue from 45% to 55% by FY26. The firm’s emphasis on cost discipline, particularly through reduced rental expenses and controlled hiring, is projected to drive structural margin improvements. Analysts expect that a 1% shift in revenue toward domestic operations could enhance margins by 8 to 10 basis points.
With a forward P/E ratio that indicates undervaluation and a strong net cash reserve of $4.7 billion, Citi notes significant potential for capital gains. New Oriental, known for its comprehensive educational services—including test preparation, tutoring, online learning, and overseas consulting—remains a top pick for investors looking for undervalued stock opportunities.
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End of Release
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