DJ Koolearn Technology May Be Weighed by Intense Competition -- Market Talk
0619 GMT - Koolearn Technology may be weighed by intense competition in the education sector with customer-acquisition costs up 20%-30% due to an increasingly saturated market, Daiwa Capital says. The Japanese investment bank raises its 2022-2023 revenue estimates for Koolearn due to stronger-than-expected growth momentum in the K12 segment, although this may be partially offset by weak college-education course sales. Koolearn is starting to explore offline marketing campaigns, which may help the company to differentiate itself from its competitors, it says. Daiwa cuts target price to HK$35.00 from HK$38.00 but maintains its outperform rating. Shares are down 0.6% at HK$32.35. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
November 23, 2020 01:19 ET (06:19 GMT)
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