08:50 AM EDT, 04/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We downgrade our rating on EDU to Hold (from Buy) as we cut our target price to USD50 (from USD65), based on 22x FY 25 (May) P/E, well below the five-year average of 29.8x, following several quarters of guidance misses. We reduce our FY 25 EPS forecast to USD2.26 (from USD2.50) and FY 26 EPS to USD3.09 (from USD3.43). For FY 25-FY 26, we project revenue growth of 12% and 16%, respectively (from 17% and 18%), reflecting the ongoing transition away from East Buy's private label and livestreaming business and slowing revenue growth for the core education division. We also adjust our operating margin expectation to 10.4% in FY 25 and 12.0% in FY 26 (cut from 11.0% and 12.5% previously), mainly due to bigger-than-expected losses from EDU's non-core East Buy business, which we expect to persist into FY 26. We stay neutral on the stock for now, and believe that a concrete profitability turnaround at East Buy and a margin uptrend for the core education business are likely positive catalysts.