GSX - GSX Techedu gains after JPMorgan moves to neutral following selling pressure

GSX Techedu (GSX) rose 2.8% in premarket trading after JPMorgan raised the Chinese tutoring company to neutral from underweight, saying that the technical selling pressure is likely to subside sooner or later.GSX shares plunged last week following severe selling pressure due to the liquidation of family office Archegos Capital, which was forced to liquidate many positions after margin calls.There still exist "myriads of uncertainty" for the company from education reform policies in China to company-specific issues, so its difficult to "turn outright bullish" on the shares, JPMorgan analyst DS Kim writes in note."Although or level of confidence in estimates is too low to turn bullish, we do feel it's risky to stay bearish given ample margin of error imputed in current multiples - we se neutral as fair for current risk/reward," Kim writes.Cuts PT to $37 from $60.GSX short interest 34% of float.Recall March 30, GSX Techedu shares advances on CEO's plan

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GSX Techedu gains after JPMorgan moves to neutral following selling pressure