Analyst Toni Kaplan of Morgan Stanley maintained a Sell rating on Bright Horizons, retaining the price target of $70.00.
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Toni Kaplan has given his Sell rating due to a combination of factors tied to slowing fundamental momentum and regional headwinds. Bright Horizons delivered headline revenue growth roughly in line with expectations, but the core full-service segment showed only low-single-digit organic expansion, with results heavily reliant on foreign-exchange and acquisition benefits rather than underlying demand.
Toni Kaplan’s rating is based on concerns that enrollment challenges in Australia are now pressuring both current performance and full-year guidance, leading management to cut its outlook for full-service revenue and margins. The company’s center base and capacity have fallen to multi‑year lows, and guidance implies further deceleration ahead, which, in her view, is not adequately reflected in a stock trading above her unchanged $70 price target, justifying an Underweight stance.
Kaplan covers the Industrials sector, focusing on stocks such as Verisk Analytics, Republic Services, and Waste Connections. According to TipRanks, Kaplan has an average return of 0.1% and a 51.70% success rate on recommended stocks.