Deutsche Bank Starts TAL Education Group (XRS) at Buy, Long-Term Prospects Look Promising
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Price: $76.53 +0.34%
Rating Summary:
6 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank initiates coverage on shares of TAL Education Group (NYSE: XRS) with a Buy rating and $12.60 price target.
China's K-12 after school tutoring market is forecasted to grow at a 19 percent CAGR from 2009-2014 to $66 billion. The firm believes that this positions XRS very well as they offer a more one-on-one style of tutoring.
Deutsche also anticipates that XRS will maintain its debt-free and cash-rich profile. An analyst at the firm comments, "Backed by its ability to increase small classes’ ASPs and improving utilization of the learning centers over time, we expect it to maintain its higher-than-peer EBIT margins at 20% by FY15E."
The firm is current outlook calls for 2012 sales of $151.3 million and EBITDA of $29.9 million. EPS is expected to be $0.31 which represents a 10.8 percent decline year-over-year.
For more ratings news on TAL Education Group click here and for the rating history of TAL Education Group click here.
Shares of TAL Education Group closed at $10.90 yesterday.
China's K-12 after school tutoring market is forecasted to grow at a 19 percent CAGR from 2009-2014 to $66 billion. The firm believes that this positions XRS very well as they offer a more one-on-one style of tutoring.
Deutsche also anticipates that XRS will maintain its debt-free and cash-rich profile. An analyst at the firm comments, "Backed by its ability to increase small classes’ ASPs and improving utilization of the learning centers over time, we expect it to maintain its higher-than-peer EBIT margins at 20% by FY15E."
The firm is current outlook calls for 2012 sales of $151.3 million and EBITDA of $29.9 million. EPS is expected to be $0.31 which represents a 10.8 percent decline year-over-year.
For more ratings news on TAL Education Group click here and for the rating history of TAL Education Group click here.
Shares of TAL Education Group closed at $10.90 yesterday.
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