Source: Unsplash
Goldman Sachs analyst Christine Cho downgraded GSX Techedu (GOTU) to Sell from Neutral with a price target of $70, up from $61.
The valuation "looks stretched' with the share price up 103% year-to-date, Cho tells investors in a research note.
The analyst attributes the strong performance to potentially greater demand for online tutoring as certain regions in China have suspended offline tutoring amid the resurgence of COVID-19 as well as "relatively eased" online traffic competition.
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