UPDATE: Credit Suisse Lowers PT to $13.60 on TAL Education Group on Cautious Outlook

Credit Suisse reiterated its Outperform rating on TAL Education Group XRS but lowered its price target from $15.50 to $13.60. Credit Suisse commented, "We believe XRS has less risks in the VIE structure and fundamentals remain strong despite the policy progression, which we expect to benefit the company in the long run as it is a more established and complaint brand. We raise FY13E EPS by 8% due to better margins from product mix optimisation, and cut target price from US$15.5 to US$13.6 as a result of slowing top-line growth due to more prudent expansion into the future." TAL Education Group closed at $8.88 on Tuesday.