Raffles Edu

Raffles Edu: may come under pressure as 1QFyJun11 results below expectations. Net profit -58% yoy at $5.9m on lower revenue, plus FX losses, higher start-up costs for new colleges.
Co. still struggling with falling student enrolment in China, and the Street is not expecting student numbers to recover significantly in the near term. Stock unloved now due to lack of catalysts.
OCBC has Hold call with S$0.285 target.
KE maintains Hold, lowers target to $.028 from $0.30.

DBSV downgrades to Fully Valued with TP of $0.25, previously $0.29, on back of disappointing 1Q11 results were below expectations. Earnings plunged 58% yoy as result of FX losses, weak operating environment and higher expenses. FY11F earnings cut by 15% as with grp unlikely to meet full year estimates under a stronger SGD environment and a declining enrolment trend in China.