Core Viewpoint - Bank of America Securities has raised the non-GAAP earnings per share forecast for New Oriental Education & Technology Group (09901, EDU.US) for the fiscal years 2026 to 2027 by 4% and 5% respectively, primarily due to better-than-expected revenue decline in overseas business and improved profit margins [1] Group 1 - Target price increased by 5% to HKD 45.4, with the US stock target price rising to USD 58.2, maintaining a "Buy" rating [1] - The company holds USD 4.8 billion in cash and has strong free cash flow generation capabilities, estimated to reach USD 500 million to USD 700 million from fiscal years 2026 to 2028 [2] - Current dividend payout ratio is equivalent to 50% of net profit (USD 371 million for fiscal year 2025), indicating significant room for improvement [2] Group 2 - Management guidance indicates that overseas revenue is expected to decline in the low single digits for the August quarter and fiscal year 2026, but non-US/UK consulting and related services (accounting for about 60% of consulting revenue) are expected to grow above expectations [2] - K9 business growth may temporarily fall below the annual target of 20% due to course scheduling adjustments and competition, but is expected to accelerate again starting from the November quarter [2] - Profit margin resilience is anticipated due to cost control, improved margins in K12 and Dongfang Zhenxuan, and narrowing losses in the cultural tourism business, which may offset pressure on overseas business profit margins [2]
美银证券：升新东方-S目标价至45.4港元 潜在催化剂即将来临