Gaotu Techedu Stock Fair Value – Citi Upgrades Gaotu Techedu Twice Following Record Viewership Trends

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Gaotu Techedu ($NYSE:GOTU), an online education platform based in Beijing, has recently seen remarkable success with its viewership trends, leading Citi to award them a double upgrade. Gaotu Techedu offers content across various topics such as English, Math and Coding, specifically designed to help students excel in their studies. The company’s expansive library of content has allowed it to effectively reach a large audience, garnering over 2 million paying users in the last year. The double upgrade from Citi is a testament to the company’s success in its sector, and the investors have responded positively to the news. In addition to the share price increase, Gaotu Techedu has also seen its market capitalization rise, enabling them to become one of the largest educational technology companies in China.

The impressive viewership trends that have contributed to the success of Gaotu Techedu are an encouraging sign for the industry. As more and more people become comfortable with using online education platforms, it is likely that this trend will continue to grow. It’s clear that Gaotu Techedu is leading the way in this space and making strides towards a more connected and successful future for students looking to improve their academic performance.

Stock Price

On Wednesday, GAOTU TECHEDU experienced an increase in the stock market of 11.9%, with the opening stock price at $3.3 and closing at $3.7. This was a major leap from the prior closing price of $3.3, demonstrating the increasing public interest in the company. The double upgrade from Citi was a response to the record viewership trends that GAOTU TECHEDU had recently been experiencing. Viewership has grown significantly since the company launched, indicating that it is a viable and worthwhile investment for the public.

The increasing stock price bodes well for the future of GAOTU TECHEDU as investors are continuing to show faith in the company and its potential to continue growing. With the backing of Citi, GAOTU TECHEDU looks poised to reach new heights in the coming months. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Gaotu Techedu are shown below. More…

Analysis – Gaotu Techedu Stock Fair Value

GoodWhale recently conducted an analysis of GAOTU TECHEDU‘s wellbeing. We applied our proprietary Valuation Line to the company and determined that its intrinsic value is around $4.6. Currently, GAOTU TECHEDU stock is trading at $3.7, which represents a 19.6% undervaluation of the true worth of the firm. Thus, we recommend that investors take advantage of the current market conditions and purchase shares of this company. More…

Peers

All of these companies are dedicated to providing quality educational services to their clients, ranging from online education to tutoring and more. With their innovative approaches and cutting-edge technology, they are transforming the education industry and making learning more accessible and affordable.

– Koolearn Technology Holding Ltd ($SEHK:01797)

Koolearn Technology Holding Ltd is a technology company based in China that develops educational products and services. The company has a strong presence in the Chinese market, and its products are used by millions of students and educators. As of 2023, Koolearn Technology Holding Ltd has a market cap of 54.29B, giving it a strong position in the Chinese technology sector. The company’s Return on Equity (ROE) is -3.35%, which is lower than the industry average. This indicates that the company is not making the best use of its assets, although it does have a large market capitalization.

– Jiangsu Chuanzhiboke Education Technology Co Ltd ($SZSE:003032)

Jiangsu Chuanzhiboke Education Technology Co Ltd is a leading provider of educational technology solutions in China. The company has a market capitalization of 6.86 billion US dollars as of 2023, signifying its strong financial performance and market position. Furthermore, the company’s Return on Equity (ROE) of 10.39% demonstrates its ability to generate profits from its equity investments. Chuanzhiboke’s products and services are designed to enhance the quality of education while providing students with increased access and convenience. The company’s offerings include online and offline platforms, software, tools, and services that enable educators and learners to collaborate, create, and consume high-quality educational content in a secure and efficient manner.

– Dashan Education Holdings Ltd ($SEHK:09986)

Dashan Education Holdings Ltd is an education technology company specializing in providing innovative and interactive digital learning solutions, as well as high-quality educational content. As of 2023, the publically-traded company has a market capitalization of 1.45 Billion USD and a return on equity (ROE) of -19.33%. Despite the negative ROE, the company’s market cap has been steadily increasing over the years, indicating investor confidence in the company’s ability to turn a profit.

Summary

Investing in Gaotu Techedu has become more attractive after the company’s double upgrade from Citi on the back of strong viewership trends. On the same day, its stock price has moved up significantly, which is an indication of confidence in the stock. With the upgrade, analysts have raised their target price for Gaotu Techedu, citing a bright outlook with increasing demand for its online learning services.

In addition, the company has experienced robust growth in its user base, which provides a strong foundation for future growth. All in all, Gaotu Techedu looks like a promising investment opportunity for those looking to add a quality online education stock to their portfolios.