TAL Education (TAL) Drops on Rating, Price Target Downgrade

By Angelica Ballesteros | July 02, 2025, 10:28 AM

TAL Education Group (NYSE:TAL) is one of the 10 Stocks Crash Hard on a Roaring Monday.

TAL Education dropped its share prices for a second day on Monday, losing 4.4 percent to finish at $10.22 apiece after earning a stock downgrade from Citigroup.

In a market note last week, Citigroup downgraded TAL Education Group’s rating and price target (NYSE:TAL) to “neutral” from “buy” and to $11.54 from $13.4, citing a balanced risk-reward profile.

Citigroup said that while TAL Education Group (NYSE:TAL) has a solid downside floor, it also faces limited near-term upside potential.

Concerns, however, linger on the company’s Content Solutions business, which focuses on learning devices, as persistent losses in the said segment are expected to spill over to fiscal year 2027 and significantly impact overall profitability.

TAL Education (TAL) Drops on Rating, Price Target Downgrade
A teacher providing personalized instruction to a student in a small class environment.

TAL Education Group (NYSE:TAL) is a Chinese company listed only on the US stock exchange. While its core business is in China, it also operates in other countries such as Hong Kong, the US, Canada, and Singapore. It currently invests heavily in Artificial Intelligence in a bid to bolster its modern learning products and services.

While we acknowledge the potential of TAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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