Piper Jaffray Maintains Overweight Rating on New Oriental Education (EDU)

Piper Jaffray reiterates its Overweight on New Oriental Education EDU shares. Piper Jaffray are raising their Price Target from $108 to $125 (32.2x FY12E EPS) on the heels of positive takeaways from visits to New Oriental learning centers in Beijing and Shanghai. Piper Jaffray remain positive on the longer-term outlook for EDU since they expect the company to hit trough operating margins at the end of 1H11 (Nov 2010).