UPDATE: Oppenheimer Downgrades New Oriental Education & Technology Group to Perform

Oppenheimer lowered its rating on New Oriental Education & Technology Group

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.