UPDATE: JG Capital Initiates Coverage on New Oriental with Overweight Rating, $24 PT

In a report published Monday, JG Capital initiated coverage on New Oriental Education & Technology Group

with an Overweight rating and $24.00 price target. JG Capital noted, “EDU is the best way to play the growth in China's private education market. Now that the SEC has found no objections in EDU's reporting structure, we think EDU's stock price is poised for a significant recovery. We think EDU will continue to benefit from the overall economic growth and the demand for high-quality private education and English language training in China. We initiate coverage on EDU with an Overweight rating and a price target of USD $24.00, which equates to a P/E of 16x our 14E EPS of $1.49.” New Oriental Education & Technology Group closed on Friday at $17.14.