In a report published Monday, Piper Jaffray analyst Mark A. Marostica downgraded the rating on

(NASDAQ:

) from Overweight to Neutral, but reiterated the $7.00 price target. In the report, Piper Jaffray noted, “We are downgrading shares of CEDU from Overweight to Neutral on valuation as the stock is now trading generally in-line with the proposed $7 takeout price. Recall ChinaEdu received a preliminary, non-binding proposal letter in June from executive chairman Julia Huang and CEO Shawn Ding to take ChinaEdu private. Management indicated bank financing for the deal is still in the process of negotiation and offered no timetable for consummation of the go-private transaction. We ultimately believe going private is the right strategic move for ChinaEdu, as we believe management will be more amenable (vs. institutional investors) to the likely earnings volatility which we expect will occur when the company ramps investment spending over the next several quarters. Our price target remains $7, in-line with the takeout price.” ChinaEdu Corporation closed on Friday at $7.10.