UPDATE: HSBC Downgrades TAL International (TAL) to Hold

June 18, 2021 2:34 AM EDT
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Price: $5.70 --0%

Rating Summary:
    9 Buy, 13 Hold, 6 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 21 | New: 45
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(Updated - June 18, 2021 3:01 AM EDT)

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."

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 $20.62 yesterday.

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