Morgan Stanley upgraded KinderCare Learning (KLC) to Overweight from Equal Weight with an unchanged price target of $30. The firm sees the recent decline in the share price as an attractive entry point. KinderCare has declined 28% month-to-date following competitor Bright Horizons Family Solutions’ (BFAM) earnings report which included revenue deceleration both in the quarter and in the outlook, the election results – which brings potential for some uncertainty given the company’s large government subsidy exposure, and its earnings release which lacked further guidance, the analyst tells investors in a research note. Morgan Stanley finds the selloff overdone, saying “not much has actually changed” with regard to KinderCare’s fundamentals.
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Read More on KLC:
- KinderCare Learning price target lowered to $31 from $34 at BMO Capital
- KinderCare Learning upgraded to Outperform from Neutral at Baird
- KinderCare Learning falls -14.8%
- KinderCare Reports Strong Revenue Growth in Q3 2024
- KinderCare reports Q3 adjusted EPS 5c, consensus (2c)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
