SINGAPORE (Nov 3): Maybank Kim Eng has downgraded Overseas Education Ltd, which caters to children of expatriates, from “buy” to “hold” on drop in student numbers. The new target price is 72 cents, down from $1.09.

According to the management, the trend of students leaving continues to increase and has accelerated in the last few months. This year, enrolment has been down 17% y-o-y in 1H15.

The brokerage has trimmed its student numbers forecast to 2,675- 3,000 for FY15-17, from 3,140-3,100. The dip in student numbers can be offset somewhat by a 3.5% increase in tuition fees.

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