May 3, 2022

The stock price of TAL Education Group (NYSE: TAL) increased by 9.14% today. This is why. The stock price of TAL Education Group (NYSE: TAL) increased by 9.14% today. Investors are responding positively to a couple of bullish research reports. Macquarie analyst Linda Huang assigned the company a price target of $4.30. And Huang is maintaining an “Outperform” rating on the shares. JPMorgan analyst DS Kim upgraded TAL International to a “Neutral” rating from an “Underweight” rating. And Kim assigned the company a price target of $3.90. “TAL resumed quarterly reporting and earnings call last week, for the first time since the Double Reduction policy hit the industry last summer,” wrote Kim in a research note. “We’d like to say this is certainly a good start, but we still struggle to find ways to trade this name on fundamentals, as it’s nearly impossible for anyone to project the scale and profitability of its ‘post-AST (after-school tutoring)’ businesses. Having said that, the stock is really cheap – more than cheap, actually – as it’s trading at a negative enterprise value (i.e., current net cash position well above its market cap), and we don’t think risk/reward for staying Underweight is attractive.”  Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.