08:55 AM EDT, 05/06/2024 (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:

Our revised target price of USD90 (from USD91) implies 28.0x FY 25 (May) P/E (three-year mean: 22.0x) on EPS growth outlook of more than 40% p.a. through 2025. 9M FY 24 earnings per ADS was USD1.71 (+94% Y/Y), below our estimate. Revenue surged 49% to USD3.2 bln, mainly driven by domestic test preparations (+53%) and new educational business initiatives (+73%), as well as East Buy . Operating margin expanded +4.1 ppt to 9.4% on (i) higher utilization of learning centers and teaching resources and (ii) East Buy expansion across multiple channels. Our FY 24/FY 25 revenue growth projections remain at 29%/21%. We lower our earnings per ADS estimates to USD2.19/USD3.20 (from USD2.57/USD3.24) on revised net margin projections at 9.3%-11.2% (from 10.9%-11.4%). We still anticipate growth momentum from new businesses, East Buy's SKUs expansion for private label products, and improved NOE facility utilization.