New Oriental Education & Technology Group Inc. (NYSE:EDU) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
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On June 27, 2025, Citi upgraded its rating on New Oriental Education & Technology Group Inc. from ‘Neutral’ to ‘Buy’ rating, while reducing its price target from $77 to $50. The analyst cited strong domestic growth potential as the reason for the upgrade.
Furthermore, Citi projected upside potential for New Oriental Education & Technology Group Inc. due to the expansion of its high-margin segments, K9 and Senior High. These segments, expanding at 35% and 11% annually, are expected to grow from 45% to 55% of revenue by FY26.
Meanwhile, the company’s cost discipline, particularly rent reductions and controlled hiring, is driving structural margin expansion. According to analysts’ projections, a 1% revenue shift to domestic operations results in an 8-10 basis-point increase in New Oriental Education & Technology Group Inc.’s margins. With a low forward P/E ratio and a $4.7 billion net cash reserve, there is strong room for capital gains, the analyst notes.
New Oriental Education & Technology Group Inc., a China-based educational services provider, offers test preparation, tutoring, online learning, and overseas study consulting. It remains on our list of the most undervalued stocks.
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