07:40 AM EDT, 05/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We downgrade our rating on TAL Education ( TAL ) to Hold (from Buy) as we cut our target price to USD9.50 (from USD18), based on 31.7x FY 26 (Feb.) P/E, well below the five-year average of 50.2x. We reduce our FY 26 EPS forecast to USD0.30 (from USD0.40) and initiate FY 27 EPS at USD0.48, implying growth vs. FY 25's USD0.14. Our EPS forecast is underpinned by revenue growth assumption of 34% and 29% respectively, driven by TAL's expanding learning center network, sustained growth in online enrichment learning programs, and gradual sales acceleration of learning devices enhanced with AI technologies. While we expect operating margins to improve to 10.2% in FY 26 and 12.0% in FY 27 (from -0.1% in FY 25) as TAL benefits from economies of scale and operational refinements, offset by the company's loss-making learning devices business. However, the heightened U.S.-China geopolitical tensions have increased the risk of forced delisting of TAL, in our view, resulting in our neutral stance on the stock.