Goldman Sachs analyst Timothy Zhao upgraded New Oriental Education to Buy from Neutral with a price target of $65, down from $67. The stock's valuation is "too compelling to ignore," the analyst tells investors in a research note. The firm says New Oriental trades at the lowest valuation level among 140 China internet and consumer stocks it covers. The company's continues to build cash despite its "enhanced" shareholder returns while its growth outlook remains well above the sector average, adds Goldman. The firm sees potential upside to consensus estimates.
