Update shared on04 Aug 2025
Fair value Increased 5.50%Analysts have raised their price target for TAL Education Group to $12.98, citing strong core operations and balance sheet strength despite ongoing losses in the Content Solutions segment that are expected to cap near-term upside.
Analyst Commentary
- Continued lack of company guidance is creating uncertainty in the near-term outlook.
- Core operations and a strong balance sheet are seen as key factors supporting current share value.
- Major profitability overhang comes from persistent losses in the Content Solutions segment, projected to continue through fiscal 2027.
- Ongoing losses in Content Solutions are expected to significantly erode overall profitability.
- Analysts see limited downside risk to the stock but also limited potential for near-term upside.
What's in the News
- TAL Education Group announced a new share repurchase program of up to $600 million, to be funded from existing cash and valid for 12 months.
- The Board of Directors authorized a buyback plan.
- From March 1, 2025 to July 30, 2025, the company repurchased 15,184,109 shares (2.5%) for $477.4 million; in total, it completed repurchasing 52,467,691 shares (8.32%) for $986.77 million under its 2021 buyback.
- No shares were repurchased in the periods from September 1, 2024 to February 28, 2025.
- TAL Education Group is expected to report Q1 2026 results on July 24, 2025.
Valuation Changes
Summary of Valuation Changes for TAL Education Group
- The Consensus Analyst Price Target has risen from $12.32 to $12.98.
- The Net Profit Margin for TAL Education Group has significantly risen from 7.21% to 8.72%.
- The Future P/E for TAL Education Group has significantly fallen from 29.93x to 25.31x.
Disclaimer
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