Opinion | The SEC Needs to Hold Chinese Companies Accountable
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2024
0mins
Source: WSJ
U.S. Funding and Regulatory Challenges: The U.S. is a primary source of funding for global companies, but many Chinese firms are not complying with regulations that require transparency in financial records, leading to potential risks for American investors.
Recent Cases of Fraud: Notable incidents, such as Luckin Coffee's $300 million sales fabrication and TAL Education Group's revenue overstatements, highlight the dangers posed by noncompliant Chinese companies, prompting calls for stricter enforcement of existing rules.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on TAL
Wall Street analysts forecast TAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TAL is 13.77 USD with a low forecast of 11.54 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 10.760
Low
11.54
Averages
13.77
High
16.00
Current: 10.760
Low
11.54
Averages
13.77
High
16.00
About TAL
TAL Education Group is a holding company principally engaged in the provision of enrichment learning services and learning content solutions. The Company mainly operates two businesses. The learning services and others business is primarily engaged in the provision of learning services such as small classes, personalized premium services and online course. The learning content solutions business is primarily engaged in the sale of physical products and the digital resources. The Company is also engaged in the provision of Software-as-a-Service (SaaS) services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TAL Education Group Reports Strong Revenue Growth in Q3 Earnings
- Significant Revenue Growth: TAL Education Group reported Q3 revenues of $770.2 million, reflecting a year-over-year increase of 27.0%, driven by strong performance in both offline and online learning services, thereby reinforcing its market position.
- Improved Gross Margin: The company achieved a gross profit of $431.8 million, a 35.0% year-over-year increase, with gross margin rising from 52.7% to 56.1%, indicating successful cost control and operational efficiency.
- Strong Cash Flow: As of November 30, 2025, cash and cash equivalents totaled $2.146 billion, with net cash provided by operating activities reaching $526.7 million in Q3, ensuring financial flexibility for future investments and expansions.
- Share Repurchase Program: The company repurchased 844,856 common shares at an aggregate consideration of approximately $27.7 million during the quarter, demonstrating management's confidence in the company's future while also creating value for shareholders.
Continue Reading
TAL Education Group Reports 465% Net Income Surge in Q3 FY2026
- Significant Earnings Growth: TAL Education Group reported a staggering 465% increase in attributable net income for Q3 FY2026, reaching $130.6 million compared to $23.1 million in the same period last year, reflecting strong profitability and investor confidence.
- Operating Income Reversal: The company achieved operating income of $93.1 million, reversing a loss of $17.4 million from the previous year, indicating effective strategies in cost management and revenue enhancement.
- Revenue Surge: Revenues jumped by 27% year-on-year to $770.2 million from $606.4 million, showcasing robust demand in the education sector and an expansion of market share.
- Ongoing Buyback Plan: TAL announced a $600 million share repurchase plan over 12 months, with $27.7 million already spent, demonstrating confidence in future stock performance and potential for further buybacks.
Continue Reading