TAL Education downgraded to Neutral from Outperform at Macquarie

Macquarie last night downgraded TAL Education (TAL) to Neutral from Outperform with a price target of $10.90, down from $14.50. The firm expects revenue growth moderation due to the high bases in both the company’s Learning Service and Learning Content divisions. Learning Devices will continue to require high spending to build its sales channel, and the division will remain a drag on margins, the analyst tells investors in a research note. Macquarie cites the margin pressure for the downgrade.