The Bull Case For New Oriental Education & Technology Group (EDU) Could Change Following Its Removal From A Key Hong Kong Index - Learn Why

• New Oriental Education & Technology Group Inc. was recently removed from the Hang Seng China Enterprises Index, reflecting a reshuffle in one of Hong Kong’s key benchmarks for mainland-linked companies.
• This index removal can influence institutional fund flows and sentiment, as some investors track or benchmark against the Hang Seng China Enterprises Index when allocating capital.
• We’ll now explore how New Oriental’s removal from the Hang Seng China Enterprises Index could influence its investment narrative and future positioning.

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New Oriental Education & Technology Group Investment Narrative Recap

To own New Oriental today, you have to believe its pivot into non-academic tutoring, AI-powered learning and diversified education services can offset pressure in legacy and tourism-related businesses. The Hang Seng China Enterprises Index removal may affect short term sentiment and flows, but it does not fundamentally change the key near term catalyst in execution of these newer growth areas, nor the biggest risk around intensifying competition and the profitability of its newer ventures.

Against this backdrop, the recent confirmation of a new US$300 million buyback authorization and ongoing dividends is particularly relevant. These capital return commitments can help underpin confidence if index related selling creates volatility, but they do not remove the underlying exposure to policy, demographic shifts and slower momentum in non-academic and cultural tourism segments.

However, investors should also be aware that intensifying K 12 and non academic competition could...

Read the full narrative on New Oriental Education & Technology Group (it's free!)

New Oriental Education & Technology Group's narrative projects $6.5 billion revenue and $628.5 million earnings by 2028. This requires 9.7% yearly revenue growth and a roughly $256.8 million earnings increase from $371.7 million today.

Uncover how New Oriental Education & Technology Group's forecasts yield a $64.49 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$38.90 to US$127.03 per share, showing how far apart individual views can be. When you set those against the current focus on AI powered learning and non academic growth as key catalysts, it underlines why many readers may want to compare several alternative viewpoints on New Oriental’s future performance.

Explore 4 other fair value estimates on New Oriental Education & Technology Group - why the stock might be worth 27% less than the current price!

Build Your Own New Oriental Education & Technology Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Oriental Education & Technology Group research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free New Oriental Education & Technology Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Oriental Education & Technology Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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