TAL Education Group (ADR) (NYSE:XRS) keeps moving forward in the international education field. On September 5, TAL announced the release of HiWorld, a new training brand for overseas study.

 

 

Besides, TAL announced the full acquisition of ACESSAT, a training institution for overseas study. ACESSAT will serve as a part of HiWorld and provide a series of training services, including SSAT, ACT, SAT, and TOEFL.

Founded in 2012, ACESSAT is dedicated in providing training services for teenagers in China to study abroad. The business covers SSAT, ACT, SAT, TOEFL, and systematic courses of the western culture. Different from the popular star-teacher model in the education and training sector, ACESSAT insists on adopting technologies in teaching from the initial stage. According to the rules of metrology and pedagogy, ACESSAT has successfully built a to-be-tested knowledge hierarchy system and developed a well-calibrated model for test taking, helping a large number of students achieve outstanding results. Now, after four years’ development, the students from ACESSAT can always be found in the TOP-20 senior high schools in the US.

As Bai Yunfeng, a co-founder of TAL, says, with the upgrade of the consumption and the rise of the new generation of parents, Chinese families are expecting more on their children’s education. Based on the rich experience in K12 education, TAL hopes to provide Chinese children with abundant, diversified, and systematic domestic and international education services by integrating world-class education resources and combing the wisdom of human and intelligent technology.

TAL Education Equity Analysis

TAL Education Group (ADR) (NYSE:XRS) opened trading today as $70.24 and is trading in the range of 63.97-70.39 today. TAL Education’s current market cap stands at $5.68 billion.

TAL Education is currently covered by 13 Wall Street analysts.  The mean target price is $69.66 according to First Call.  This presents a solid downside to the current price of the equity.  The Mean Recommendation sits at 2.1 which is based on 2 Strong Buy, 9 Buy and 2 Hold ratings.

The current quarter EPS consensus estimate is .53 with revenue estimates of 250.52M.  Sales are expected to grow at a 44.50% rate.  TAL Education reported actual earnings last quarter of 0.25 which fails to beat the .29 consensus estimate, a -13.80% surprise.

Corporate Profile

TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People’s Republic of China. The company offers tutoring services to K-12 students covering academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. It offers tutoring services primarily through small classes, including Xueersi Peiyou and Mobby tutoring services; personalized premium services; and online course offerings. As of February 28, 2015, the company’s educational network included 289 learning centers and 267 service centers in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Wuhan, Nanjing, Xi’an, Hangzhou, Chengdu, Zhengzhou, Suzhou, Chongqing, Taiyuan, Changsha, Shenyang, Shijiazhuang, Qingdao, and Jinan; and call centers in Beijing, Shanghai, Tianjin, Guangzhou, and Shenzhen. It also operates jzb.com, an online education platform that serves as a gateway to its online courses and other Websites, which offer college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, and personalized premium services under the Zhikang brand; study abroad, mathematics, English, Chinese composition, and small-class training under the brand Xueersi Peiyou; tutoring services for students aged two through eight under the Mobby brand; raising infants and toddlers; etc.

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