China East Education stock rating downgraded to Hold by Jefferies

Published 28/08/2025, 13:26
China East Education stock rating downgraded to Hold by Jefferies

Investing.com - Jefferies downgraded China East Education Holdings (HK:667) from Buy to Hold while raising its price target to HK$8.80 from HK$6.60.

The rating change comes despite Jefferies’ positive outlook on the company’s operational recovery, with the firm forecasting China East Education to "resume almost peak operation efficiency in 2026."

Jefferies has increased its 2025 and 2026 net profit forecasts for the company by 34% and 40% respectively, citing expectations of "healthy FCF compounding" going forward.

The higher price target reflects these improved financial projections, representing a significant increase from the previous target of HK$6.60.

Despite the improved outlook, Jefferies recommended "taking a breather" on the stock, citing the "sharp increase in share price and some buyside investors’ expectations" as reasons for the downgrade to Hold.

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