Xueda Education Upgraded to Neutral at Goldman Sachs Group Inc. (XUE)
Xueda Education (NYSE:XUE) was upgraded by equities research analysts at Goldman Sachs Group Inc. from a “sell” rating to a “neutral” rating in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports.
The analysts wrote, “In the most recent quarter, Xueda delivered 3.5pp yoy gross margin expansion, achieving one of the fastest efficiency improvements in its reporting history, which indicates rising utilization across the learning center network. This pushes up the operating margin close to pre-disruption levels. Combined with positive 3Q guidance and reasonable valuation, we believe there may be limited share price downside. Since we added the stock to our Sell list on December 11, 2012, it has risen 47% vs. MSCI China’s -5%, mainly due to the company’s improving margin profile ytd, in our view. Over 12 months, it has risen 38% vs. MSCI China’s +7%.”
Shares of Xueda Education (NYSE:XUE) traded down 2.50% on Wednesday, hitting $3.9001. The stock had a trading volume of 26,980 shares. Xueda Education has a one year low of $2.30 and a one year high of $4.47. The stock has a 50-day moving average of $3.63 and a 200-day moving average of $3.22. The company has a market cap of $255.7 million and a price-to-earnings ratio of 40.82.
Xueda Education Group, incorporated on April 24, 2009, is a holding company. Through its subsidiaries, it is engaged in providing tutoring services for primary and secondary school students in China with a focus on offering personalized tutoring services.
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