UPDATE: Piper Jaffray Raises PT to $27 on New Oriental Education & Technology Group

Piper Jaffray reiterated its Overweight rating on New Oriental Education & Technology Group

and raised its price target from $22 to $27 on lack of SEC objections to consolidation of a related entity. Piper Jaffray commented, "On Friday Oct. 12, after the market close, New Oriental filed its 20-F and indicated the SEC has no objection to the company's consolidation of its variable interest entity (VIE) into New Oriental's consolidated financial statements, thus removing what we believe is the primary overhang on the stock. Focus should now shift to the company's Aug quarter fundamentals, which we feel tracked to expectations. We reiterate our OW rating on EDU shares and raise our PT from $22 to $27 (22.5x FY13E PF EPS)." New Oriental Education & Technology Group closed at $17.14 on Friday.