‘Perplexed and frustrated’ JPMorgan downgrades TAL to Neutral

JPMorgan downgraded TAL Education (TAL) to Neutral from Overweight with a price target of $11, down from $16, following the “disappointing” fiscal Q4 report. The stock in premarket trading is down 13% to $9.56. The firm cites its “inability to reasonably analyze” the company’s underlying trends for the downgrade. TAL’s lack of disclosure on operating performance indicators and “unusual” investor relations policy “render any modelling efforts a fool’s errand,” the analyst tells investors in a research note. JPMorgan says it lacks the competitive edge in forecasting forward trends, particularly concerning TAL’s margin and earnings power. “This quarter has shaken our confidence, leaving us perplexed and frustrated,” the firm writes.