JPMorgan launches investment report today to maintain a future overweight rating

Summary: View the latest quotes Beijing time July 22 Evening News, JPMorgan released its investment report today, to maintain a good future stock (NYSE:XRS) overweight rating, while maintaining a 42 dollar target share price unchanged. The following is a summary of the contents of the report: the K-12 English training industry to see the latest quotes

Beijing Time July 22 Evening News, JPMorgan released its investment report today to maintain a good future stock (NYSE:XRS) "overweight" rating, while maintaining a 42 dollar target share price unchanged.

The following is a summary of the contents of the report:

There is little influence on K-12 English training business: There is uncertainty about whether English will exit the college entrance examination, which leads to lower demand for English training this summer. We think that this factor will only affect the preparation of English business, and will not affect the good future of K-12 English business. Moreover, the English business contributes less revenue than mathematics and physics.

Guidance revenue is also expected to prove this: a good future expects revenue growth to reach 31% to 34% in the second quarter of fiscal year 2015, while guidance revenue for the first quarter is expected to grow 6% to 10% year-on-year. This shows that the good future does not receive the impact of the decline in English training needs.

More budgets from non-English-language courses: budget savings resulting from falling demand for English training may be diverted to other courses, and the good future will benefit.

Impact on share prices: The good future fell after the first-quarter results were released yesterday. In view of the strong first-quarter performance, we believe that the decline in share prices is affected by the decline in English training needs, but mainly the emotional impact.

Valuation: We continue to maintain a "overweight" rating for future stocks while maintaining a 42 dollar target share price unchanged. (Li Ming)