Wells Fargo Downgrades TAL International (TAL) to Market Perform; Sidelined on Slowing Incrementals, Macro Headwinds

Wells Fargo downgraded TAL International (NYSE: TAL) from Outperform to Market Perform with a price target of $34-$37.00 (from $42-45).

Analyst, Michael Webber, said, "While we believe long-term fundamentals for TAL and the Box Lessor sector remain relatively firm, we expect Box Lessor incrementals to slow in H2, with potential headwinds created by TAL's larger Container Line customer base (falling freight rates) also helping to shift the stock's intermediate-term risk/reward profile from positive to neutral. In our view, slowing trade growth [Asia-US, Asia-Europe, and even Intra-Asia (to a degree)], a renewed focus on the European debt crisis, the significant likelihood of falling H2 freight rates, and seasonal weakness will all likely work against TAL and its peer group."

For an analyst ratings summary and ratings history on TAL International click here. For more ratings news on TAL International click here.

Shares of TAL International closed at $34.72 yesterday.

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