TAL, New Oriental Education new buys at Goldman Sachs on growth
by
Contributor since / Followers
Contributor since / Followers
12 months ago
AsiaVision/E+ via Getty Images
- Goldman Sachs has initiated TAL Education Group (NYSE:TAL) as a new buy citing competitive advantages in educational content and technology.
- The firm has a price target of $11.70 (~19% upside based on Wednesday’s close).
- Analyst Timothy Zhao says TAL Education (TAL) has resumed fast capacity growth, boosted its offline business, and is expanding into new educational areas.
- In addition, from fiscal 2023 through fiscal 2026, he predicts CAGR in sales of 28%.
- He also initiated New Oriental Education & Technology Group (NYSE:EDU) at buy, saying it is in the early stage of multi-year scale and profit expansion. His price target is $85 (~18% upside).
- Zhao noted that New Oriental (EDU) is gaining share in China’s education industry and is seeing balanced revenue exposure due to a wide array of educational services as well as profitable investments outside of education.