Market Overview

UPDATE: Goldman Sachs Downgrades Xueda Education Group to Sell on Utilization Challenges

Related XUE
Stocks Hitting 52-Week Lows
Morning Market Losers

Goldman Sachs reduced its rating on Xueda Education Group (NYSE: XUE) from Neutral to Sell and reduced its price target to $2.60.

Goldman Sachs commented, "Xueda expanded rapidly after the consultant disruptions in 2H11, but it has encountered utilization difficulties again, leading to 3Q earnings that came in below expectations. We are lowering FY12E-FY14E EPS by 40%/43%/48%, cutting our 12-m TP by 52% to US$2.60 (0.5X PEG), and downgrading the shares to Sell. We could turn positive if Xueda scales back unprofitable expansion and improves its gross margin again, particularly during the seasonally weak 3Q-4Q."

Xueda Education Group closed at $2.70 on Monday.

Latest Ratings for XUE

DateFirmActionFromTo
Aug 2013Goldman SachsUpgradesSellNeutral
May 2013Goldman SachsMaintainsSell
Dec 2012Goldman SachsDowngradesNeutralSell

View More Analyst Ratings for XUE
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (XUE)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga Professional