It has downgraded the stock to a “hold” rating from “add” with a lower target price of 26 cents from 42.3 cents previously.
The threat of lower enrolment numbers resulting from the soft labour market and restrictions is expected to hit the bottom line of Overseas Education, according to CGS-CIMB Research.
As such, the brokerage has lowered its FY20-22 earnings per share forecasts by 2.3-20.9% to reflect the impact.
