As previously reported, Morgan Stanley analyst Sheng Zhong upgraded OneSmart to Overweight from Equal Weight with a price target of $7.00, down from $7.50. Zhong cut the FY20 and FY21 revenue forecasts by 11% and 5% and lowered EPS estimates by 28% and 9%, respectively, to reflect the Covid-19 impact. However, the analyst noted that the company is accelerating its online strategy, which can help to broaden customer coverage in cities with an offline footprint in the long term. Zhong also thinks that near-term financial pressure is largely priced into the stock at current levels.