NEW YORK (TheStreet) -- New Oriental Education & Technology Group
(EDU - Get Report) shares are down -5.7% to $19.34 on Thursday continuing to fall after reporting weak sales guidance for the third quarter.
The Chinese tutoring service expects third quarter sales to grow by 6%-10% this year, well below analysts estimates of 19% growth.
Following the lowered guidance analysts at Morgan Stanley (MS - Get Report) and JPMorgan (JPM - Get Report) lowered their price targets to $32.7 from $38 and to $34 from $40, respectively.
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TheStreet Ratings team rates NEW ORIENTAL ED & TECH as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:"We rate NEW ORIENTAL ED & TECH (EDU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." EDU data by YCharts
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