Goldman Sachs raises New Oriental H-shares target price to 47 Hong Kong dollars, maintains "neutral" rating.

Goldman Sachs released a research report stating that the management of New Oriental mentioned several key points in the first quarter performance meeting of the 2026 fiscal year. These include the expectation that the revenue growth of the K12 business in the second quarter will accelerate, the operating profit margin of the group will expand annually, and the shareholder returns next year will not be lower than this year. The bank will roughly maintain its revenue forecast for New Oriental from fiscal year 2026 to 2028, with a 4% upward adjustment in non-GAAP net profit forecast to reflect an 8% increase in non-GAAP operating profit forecast, partially offset by reduced interest income and increased income tax. The bank maintains a "neutral" rating on New Oriental, with a Hong Kong stock price target raised from HK$42 to HK$47, and a US stock price target raised from $54 to $60. The bank also lowered its revenue forecast for Oriental Selection by 12% to 13%, but only lowered its adjusted net profit forecast by 2% to 3% to reflect an improvement in profit margin; it has a "sell" rating with a target price raised from HK$9 to HK$10.2.