Gelonghui October 24th | New Oriental (EDU.US) pre-market trading fell more than 1.4% to $60.59; H shares fell by about 6.5% today to HK$46.8. On the news front, New Oriental's net revenue in the first quarter of the 2025 fiscal year increased by 30.5% year-on-year to $1.44 billion, in line with expectations; adjusted earnings per ADS were $1.6. The company expects net revenue for the second quarter to be between $0.8514 billion and $0.8718 billion, below expectations. New Oriental's target price was lowered by several major banks after the earnings report. Citigroup's research report stated that New Oriental's management guidance is conservative but meets the bank's expectations. The bank reiterated a "buy" rating on New Oriental, believing that the current valuation excessively discounts short-term negative factors while underestimating the company's operational resilience and well-proven execution capabilities, although the target price was lowered from HK$83 to HK$64. Goldman Sachs lowered its target price for New Oriental H shares to HK$68, with a "buy" rating, believing that the company is still in the early stages of several years of scale and profit expansion in a relatively stable policy environment, forecasting an average annual revenue and earnings growth rate of 23% and 34% for New Oriental's core business from the 2024 fiscal year to the 2027 fiscal year. Daiwa's research report stated that New Oriental's revenue growth and operating profit margin guidance for the end of November's second quarter were weaker than expected. The bank lowered its target price for H shares from HK$78 to HK$70, maintaining a "buy" investment rating, slightly lowering revenue forecasts for the 2025 fiscal year to the 2027 fiscal year by 0% to 1% per year, as well as lowering earnings forecasts by 2% to 9% per share.