UPDATE: Oppenheimer Downgrades New Oriental Education & Technology Group to Perform
Oppenheimer lowered its rating on New Oriental Education & Technology Group (NYSE: EDU) from Outperform to Perform.
Oppenheimer noted, "We are downgrading EDU to Perform and removing our $35 PT. We think the SEC investigation brings considerable uncertainties and would remain a major overhang. In addition, the overseas test prep sector's enrollment declined in a growing market, and management reduced revenue guidance to +25-30% from +30-35% while expecting continued margin pressure. We expect the stock to remain range-bound, and await positive catalysts such as a clean SEC conclusion and re-acceleration of bottom-line growth; we also trim estimates."
New Oriental Education & Technology Group closed at $14.62 on Tuesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.