Loading...
Back to narrative

TAL: Share Repurchases And Margin Expansion Will Drive Stronger Returns

China's Urbanization And AI Integration Will Elevate Digital Education

TAL logo
TAL
AnalystHighTarget
Not Invested
Published 27 Apr 2025

Update shared on 14 Dec 2025

Fair value Increased 19%
Previous
n/a
n/a
AnalystHighTarget's Fair Value
n/a
Loading
1Y
13.3%
7D
-0.7%

Analysts have raised their price target on TAL Education Group to approximately $17.70 from about $14.90, citing expectations for stronger profit margins and a lower future valuation multiple that together offset slightly slower projected revenue growth.

What's in the News

  • TAL Education Group completed a share repurchase tranche between July 28, 2025 and October 29, 2025, buying back 4,195,065 shares for a total consideration of $134.7 million (Key Developments)
  • The completed buyback represents approximately 0.69% of the company’s outstanding shares, signaling continued capital return to shareholders (Key Developments)
  • This tranche fully exhausts the repurchase authorization announced on July 31, 2025, under which the 4,195,065 shares were acquired (Key Developments)

Valuation Changes

  • The fair value estimate has risen meaningfully, increasing from $14.90 to $17.70 per share.
  • The discount rate has edged higher, moving slightly from 7.53 percent to about 7.73 percent.
  • Revenue growth expectations have been trimmed modestly, easing from roughly 33.2 percent to about 30.7 percent.
  • The net profit margin forecast has improved significantly, rising from about 8.1 percent to roughly 11.2 percent.
  • The future P/E multiple has fallen substantially, decreasing from around 26.7x to about 15.8x expected earnings.

Have other thoughts on TAL Education Group?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.