Citi Upgrades New Oriental Education & Technology Group Inc. (EDU) to 'Buy' with $50 Price Target

New Oriental Education & Technology Group Inc. (NYSE:EDU) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.

On June 27, 2025, Citi upgraded its rating on New Oriental Education & Technology Group Inc. (NYSE:EDU) from ‘Neutral’ to ‘Buy’ rating, while reducing its price target from $77 to $50. The analyst cited strong domestic growth potential as the reason for the upgrade.

Furthermore, Citi projected upside potential for New Oriental Education & Technology Group Inc. (NYSE:EDU) due to the expansion of its high-margin segments, K9 and Senior High. These segments, expanding at 35% and 11% annually, are expected to grow from 45% to 55% of revenue by FY26.

Meanwhile, the company’s cost discipline, particularly rent reductions and controlled hiring, is driving structural margin expansion. According to analysts’ projections, a 1% revenue shift to domestic operations results in an 8-10 basis-point increase in New Oriental Education & Technology Group Inc. (NYSE:EDU)’s margins. With a low forward P/E ratio and a $4.7 billion net cash reserve, there is strong room for capital gains, the analyst notes.

New Oriental Education & Technology Group Inc. (NYSE:EDU), a China-based educational services provider, offers test preparation, tutoring, online learning, and overseas study consulting. It remains on our list of the most undervalued stocks.

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