UPDATE: Deutsche Bank Cuts PT to $21 on New Oriental Education & Technology Group on Reduced Outlook

Deutsche Bank reiterated its Buy rating on New Oriental Education & Technology Group

and lowered the price target from $22.00 to $21.00. Deutsche Bank said, "EDU recorded an EBIT loss of USD26.9m, missing the consensus estimate of USD9.8m by a wide margin, but better than the loss we estimated of USD35.1m. We believe the deeper-than-pre-signaled margin dilution is mainly due to 1) structural shifts that led to de-leveraging and overseas test prep segment underperformance, 2) overhead inflation induced by overly aggressive expansion, and 3) one-time expenses incurred for SEC investigations." New Oriental Education & Technology Group closed at $16.36 on Tuesday.