Source: Unsplash
Goldman Sachs analyst Christine Cho downgraded GSX Techedu (GOTU) to Neutral from Buy with a price target of $20, down from $60.
The stock closed Tuesday down 44c to $18.08. The analyst sees slower enrollment and revenue growth ahead. Cho reduced expectations for enrollment and gross billings growth in light of the "weaker" Q1 results and Q2 guidance, reflecting reduced advertising traffic acquisition in news-feed channels since April.
The analyst also sees near-term disruptions in the adult business amid the product upgrade process.
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