TAL Education downgraded to Neutral from Buy at Citi

Citi analyst Alice Cai downgraded TAL Education (TAL) to Neutral from Buy with a price target of $11.54, down from $13.40. The firm sees a balanced risk/reward at current share levels. TAL’s lack of guidance has created uncertainty, but its value is “firmly supported by its core operations and strong balance sheet,” the analyst tells investors in a research note. The primary overhang remains the Content Solutions business, contends Citi. The firm believes the segment’s persistent losses are projected to continue through fiscal 2027, “severely eroding overall profitability.” The firm sees limited downside risk but also limited near-term upside in the shares.