We reiterate our OUTPERFORM rating on Raffles Education, with a 12-month fully diluted target price of S$0.27 (previously S$0.32), implying 216.6% upside from current levels. Our target price is derived using our DCF valuation methodology, based on an unchanged WACC of 6.3% and terminal growth rate of 2.5%. The reduction in our target price reflects a more conservative FY27–30F earnings trajectory following FY26 results, as we normalise one-off disposal items and assume a slower ramp-up in ASEAN K–12 contributions against a smaller recurring revenue base, while the Group’s improved risk profile after its balance-sheet restructuring and asset monetisation continues to underpin our positive view.