J.P. Morgan Sees 20% Upside On Ambow Education (AMBO)

J.P.Morgan Chase & Co is initiating coverage on Ambow Education AMBO with an Overweight rating and a $12 price target. In the research note, J.P. Morgan writes, "Ambow achieved strong organic revenue growth of 26% YoY in 1H10 (from schools that were fully integrated by end 2008). We expect organic growth drivers to include: (1) expanding the number of courses per center, (2) enhancing the tuition mix through more advanced / one-on-one classes, (3) increasing the number of learning centers, and (4) raising Ambow's brand awareness. Over the past few years, Ambow has acquired and successfully integrated 24 schools." Shares of Ambow Education Holding Ltd. closed at $10.00 yesterday.