TAL International "outperform," target price reduced

11/27/07 - Credit Suisse

NEW YORK, November 27 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on TAL International Group (TAL), while reducing their estimates for the company. The target price has been reduced from $28 to $27.

In a research note published this morning, the analysts mention that the company has suspended its review of strategic alternatives citing market volatility. TAL International is expected to generate robust cash flows going ahead, with about 57% of its containers under long-term leases and the company is expected to announce a dividend of $1.50 per share for 2008, the analysts say. The EPS estimate for 2008 has been reduced from $2.00 to $1.90 to reflect lower fleet growth.