UPDATE: Bank of America Downgrades TAL International Group to Underperform, Lowers PT After EPS Falls Short

In a report published Thursday, Bank of America analyst Ken Hoexter downgraded the rating on

from Neutral to Underperform, and lowered the price target from $47.00 to $45.00. In the report, Bank of America noted, “TAL reported normalized 2Q14 EPS of $0.95, down 11% year-over-year, shy of our $0.98 and consensus' $0.96 estimates. Leasing revenue was $145 million, $2.5 million below our target, although total revenue of $164 million was ahead of our $158 million estimate due to higher Equipment Trading Revenue. Utilization fell 20 bps year-over-year to 97.3%, but topped our 96.0% estimate. Operating income was $76 million, $2 million below our target due to the lower leasing revenues and higher than expected operating expenses.” TAL International Group closed on Wednesday at $46.77.