TAL International Upgraded to Overweight at JPMorgan Following Q4 Beat
JPMorgan analysts upgraded TAL International (NYSE:TAL) from Neutral to Overweight and increased their price target from $10.00 to $15.00 following the company’s reported strong Q4 results.
The upgrade is influenced by the strong performance and outlook of New Oriental Education (EDU), which they believe indicates a favorable environment in the post-policy tutoring business, characterized by advantageous supply/demand dynamics and a stable policy setting. The analysts suggest that TAL International may be experiencing a shift to what they term 'supernormal' growth, as evidenced by the company's recent performance.
Consequently, the analysts revised TAL's revenue forecasts upwards for the next three years by over 30%, positioning these estimates at the highest among Street forecasts. They anticipate that TAL's earning potential will continue to surprise the market in the coming years.
| Symbol | Price | %chg |
|---|---|---|
| 215200.KQ | 42800 | -0.35 |
| 019685.KS | 1311 | 0.08 |
| 019680.KS | 2375 | -2.11 |
| POOL.JK | 50 | 0 |
TAL International Started With Buy Rating at Goldman Sachs
Goldman Sachs analysts started covering TAL International (NYSE:TAL) with an optimistic outlook, assigning it a Buy rating and setting a price target of $11.70. The analysts highlighted TAL's strengths as a K-12 focused company with competitive edges in educational content and technology. They noted TAL's rapid capacity growth, revitalization of its main offline business, and ventures into new educational areas.
The analysts anticipate a 28% sales compound annual growth rate (CAGR) from fiscal 2023 to fiscal 2026 and expect the net profit margin (NPM) to rise to 10-11% by 2026, up from -3% in 2023.
