UPDATE: Goldman Sachs Lowers PT on Xueda Education Group from $7 to $5.40

Goldman Sachs maintains a Buy rating on Xueda Education Group (NYSE: XUE) and lowers its price target from $7 to $5.40.Goldman Sachs remarks, “We believe Xueda is back on track for revenue growth after the consultant compensation issue set it off course in 2H11. Measures to rebuild the workforce, reorganize management and grant greater autonomy to branch offices seem to have had an effect. Revenue growth in 1Q was above full- year guidance and we expect long-term margin expansion on improved utilization and relatively fixed operating expenses. The stock currently trades at close to 1Q12 net cash of US$3.7 per share, with negative EV in 2012/13E. We view current levels as a good entry point for a business with visible growth and profitability. Maintain Buy with 48% potential upside.”Xueda Education Group closed at $3.66 on Friday.