Goldman Sachs Rates New Oriental Education & Technology (EDU) buy

Goldman Sachs analyst Timothy Zhao upgraded New Oriental Education & Technology Group Inc. (EDU) to a Buy rating on June 12, 2026. Along with the upgrade, the firm set a price target of $65.00 for the New York Stock Exchange-listed shares. This move suggests significant confidence in the company's ability to recover from recent price levels, as the stock has been trading well below its highs from earlier in the year.

Analysts Set New Price Targets

The upgrade from Goldman Sachs places the firm among the more optimistic voices on Wall Street. The new $65.00 target is notably higher than the $56.50 target set by Macquarie on July 30, 2026, when that firm upgraded the stock to a Neutral rating. Currently, the broader consensus among 20 analysts remains positive, with a collective recommendation of Buy and an average price target of $73.57. Goldman's target is actually conservative compared to the street's high-end estimate of $90.00, but it represents a clear shift toward a more bullish outlook than neutral-rated peers.

New Oriental Stock Performance

As of Saturday, the stock was priced at $46.53. This price sits in the lower end of its 52-week range, which spans from a low of $44.25 to a high of $64.97. The shares are currently trading below both their 50-day moving average of $54.78 and their 200-day moving average of $54.01. A moving average is a tool used by investors to track the average price of a stock over a specific period to identify trends. Trading below these levels often suggests a period of recent weakness, though Goldman's upgrade indicates a belief that the stock may be undervalued at these prices.

Recent Earnings and Growth

New Oriental has shown strong top-line performance, reporting annual revenue of $5.66 billion. This reflects a revenue growth rate of 23%. The company maintains a net margin of 8.39% and a return on equity of 12.48%, which measures how effectively a company uses shareholder money to generate profit. With a price-to-earnings (P/E) ratio of 18.38 and a forward P/E of 10.94—a measure of the stock price relative to its expected future earnings—the company appears to be trading at a lower valuation than its historical growth might suggest. Investors are looking forward to the next earnings report, which is scheduled for October 28, 2026.

Dividend Distribution

The company currently pays an annual dividend of $1.20 per share, resulting in a dividend yield of 2.16%. The payout ratio stands at 0.4, meaning New Oriental uses about 40% of its earnings to pay dividends to shareholders while keeping the rest for business operations and growth. This balance of returning cash to investors while maintaining a healthy cash flow is a key part of the company's financial profile.

Private Education in China

New Oriental Education & Technology Group Inc. is a major provider of private educational services in China. While it is well-known for test preparation and language training, it has expanded into non-academic tutoring, intelligent learning systems, and even livestreaming e-commerce. This diversification has helped the company navigate a changing regulatory environment for education providers in its home market. The upgrade from Goldman Sachs suggests that these different business segments are starting to show a clearer path toward long-term growth.

What's Ahead for New Oriental Education & Technology Group Inc.

Investors should monitor how the stock reacts to the $46.53 level, as it remains close to its annual low. The upcoming earnings announcement on October 28, 2026, will be a critical moment to see if the 23% revenue growth trend continues. While analyst ratings provide a professional outlook on where the stock might go, these targets are based on current market conditions and can change as new financial data becomes available.