According to the latest Analysis Report from Macquarie, the target price for New Oriental Education has been raised to 53 yuan. It is expected that the company will deliver a strong performance in the first quarter.

Morgan Stanley has released a research report, expecting New Oriental Education (09901.HK)(EDU.US) to achieve a 35% YoY increase in revenue for the first quarter of the 2024 fiscal year, reaching the upper limit of the company's guidance. This growth is mainly driven by the steady demand for overseas test preparation and new educational services. In addition, the bank predicts that New Oriental Education's operating profit margin under non-GAAP for the first fiscal quarter will reach 15%, a 2 percentage point increase YoY. This is primarily due to an improved utilization rate of 60%, compared to 70% to 80% during peak times. The bank expects the company's gross profit margin to further increase in the next two to three years as revenue scales up. It is noted that the bank has raised its forecast for New Oriental Education's gross profit margin, resulting in a 0.9%, 0.8%, and 0.7% upward revision in the company's net profit under non-GAAP for the fiscal years 2024 to 2026. The bank has given the company an "outperform" rating, raising the target price for H shares from HKD 44 to HKD 53, and the target price for US shares from USD 56 to USD 68. (jl/k)