Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - JPMorgan upgraded New Oriental Education & Technology Group (NYSE:EDU) (9901:HK) from Neutral to Overweight on Tuesday, raising its price target to HK$49.00 from HK$38.00.
The upgrade follows a 17% year-to-date correction in the stock price, compared to a 15% gain in the KWEB index, creating what JPMorgan sees as an attractive setup heading into fiscal year 2026, which ends May 2026.
JPMorgan maintained its earnings estimates for the education company, with the exception of foreign exchange adjustments, noting that consensus forecasts have decreased to align with the firm’s projections.
The investment bank cited multiple factors supporting its more positive outlook, including washed-out buy-side expectations reflected in the stock’s 13x forward price-to-earnings ratio and expectations that New Oriental will announce a more sustainable shareholder return policy soon.
The new price target of HK$49.00 is based on a 16x price-to-earnings multiple applied to December 2026 estimates, up from the previous 15x multiple, with JPMorgan citing improved earnings visibility as justification for the higher valuation multiple.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.