TAL Education Group's stock soared 5.01% in Friday's trading session, as investors piled into the Chinese education company amid views that its shares were undervalued and optimism surrounding its growth prospects.
Discounted cash flow analysis indicates that TAL Education is currently trading at a substantial discount of around 42% to its estimated fair value. This perceived undervaluation, coupled with forecasts for robust 20.7% annual revenue growth outpacing the broader market, has attracted investors seeking potential upside.
Additionally, TAL Education's recent earnings report for Q3 2024 showed a turnaround to profitability, with net income reaching $23.07 million compared to a loss in the prior year. This positive earnings trajectory has further fueled bullish sentiment around the company's growth story.
Reinforcing the stock's momentum, multiple analysts have raised their price targets on TAL Education while reiterating buy or overweight ratings. Notably, UBS increased its target to $17.20 from $16.40, and Morgan Stanley lifted its target to $13 from $12, citing the company's strong performance and promising outlook.
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