UPDATE: HSBC Downgrades TAL International (TAL) to Hold
- Futures rise ahead of weekly jobless claims data
- Moderna (MRNA) Tops Q2 Street Estimates, Nabs $4.2 Billion from 199 Million Sold Vaccines That Yielded 93% Efficacy Through Six Months
- Oil rises on Mideast tensions but virus concerns weigh
- Roku (ROKU) Falls Sharply on Significant Slowdown in Streaming Views, Analysts Divided
- Dollar holds gains after Fed comments, sterling ticks up after BoE
HSBC analyst Charlotte Wei downgraded TAL International (NYSE: TAL) from Buy to Hold with a price target of $25.00 (from $83.00).
The analyst comments "EDU: We factor in Scenario 3, cut our FY22e/23e revenue and earnings by between 41% and 96%, lower our DCF TPs for TAL to USD25 (from USD83) and EDU to USD9.20 (from USD18.70), downgrade both to Hold from Buy. However, the longer-term outlook may not be as bad. The likely hard-hitting impact from the potential regulations could create issues such as driving tutoring activities underground and job losses, especially for young graduates. We believe this could result in possible regulatory adjustments in the medium term, so hence we have factored in higher growth assumptions between FY24-30."
Shares of TAL International closed at $20.62 yesterday.
You May Also Be Interested In
- UPDATE: Canaccord Genuity Downgrades Maxar Technologies Ltd (MAXR) to Hold
- UPDATE: H.C. Wainwright Starts MindMed (MNMD) at Buy
- UPDATE: Stephens Upgrades Roku Inc. (ROKU) to Overweight
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesHSBC, Layoffs, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!