UPDATE: Piper Jaffray Raises PT on ChinaEdu to $7
Piper Jaffray maintains at a Neutral rating on ChinaEdu (NASDAQ: CEDU) and increase its price target from $6.50 to $7.00.
Piper Jaffray comments, “ChinaEdu delivered solid Q1 results, delivering revenue ahead of expectations while exceeding our EPS estimate with prudent cost control. Q2 revenue guidance, however, was below expectations due to weak Spring enrollments. We remain on the sidelines with respect to CEDU shares until we have better visibility on online degree services enrollments after a sluggish Spring semester, see consistent improvement in the online tutoring and international curriculum businesses, and are convinced the company's cost structure has stabilized. We maintain our Neutral rating and lower our PT from $7.00 to $6.50 (8.6x CY12E PF EPS + net cash/share).”
CEDU closed at $5.93 on Monday.
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