TAL International "neutral," target price reduced

11/08/07 - Robert W. Baird

NEW YORK, November 8 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on TAL International Group (TAL), while raising their estimates for the company. The target price has been reduced from $28 to $26.

In a research note published this morning, the analysts mention that the company has posted its 3Q pro-forma EPS ahead of the estimates. The analysts add, however, that TAL International’s profitability remains under pressure on account of rising costs and a decline in leasing rates on new containers. The company faces near-term risks, including the increasingly competitive leasing market and issues surrounding the US used-container end markets, Robert W Baird adds. The EPS estimates for 2007 and 2008 have been raised from $1.66 to $1.68 and from $1.83 to $1.85, respectively.