UPDATE: Piper Jaffray Reiterates Neutral Rating, Raises PT on ChinaEdu Corporation

In a report published Friday, Piper Jaffray & Co. reiterated its Neutral rating on ChinaEdu Corporation

, and slightly raised its price target from $6.50 to $6.75. Piper Jaffray noted, “While we acknowledge ChinaEdu's consistent top-line performance and its successful efforts in rationalizing its cost structure, we remain on the sidelines with respect to the stock due to valuation and a lack of earnings growth catalysts, in our view. We are lowering our earnings growth rate assumption from 10% to 5%, given muted topline and bottom-line growth expectations coupled with an anticipated increase in R&D spending to support future growth. Likewise, we are lowering our price target multiple to 5x (previously 10x), in-line with our revised earnings growth assumption. We are raising our price target from $6.50 to $6.75 (5x CY13E PF EPS + net cash), primarily due to higher earnings and net cash.” ChinaEdu Corporation closed on Thursday at $5.90.