TAL Education initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of TAL Education with a Buy rating and $11.70 price target. The analyst believes China’s K-12 education sector is entering a new phase of development to satisfy non-academic learning and self-learning demand as a supplement to in-school education. Industry leaders like New Oriental and TAL will deliver better business resilience and growth visibility given their diverse service offerings, capacity expansion and innovation backed by strong cash positions, the analyst tells investors in a research note. Goldman says that as a K-12 pure-play with competitive advantages in educational content and technology, TAL has resumed fast capacity growth and rejuvenated its flagship offline business.