Morgan Stanley analyst Toni Kaplan maintained a Sell rating on Bright Horizons (BFAM – Research Report) today and set a price target of $100.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Toni Kaplan has given his Sell rating due to a combination of factors impacting Bright Horizons’ financial outlook. Primarily, the company’s recovery appears to be slower than anticipated, with its Full Service revenue growth reaching its lowest point since early 2021. This sluggish pace of recovery has led to projections for adjusted EPS that are significantly below consensus for the upcoming years. Additionally, the 2024 earnings report highlighted a challenging path ahead, prompting a reduction in the price target for the stock.
Toni Kaplan’s rating reflects concerns over several key performance indicators. The anticipated deceleration in top-line growth for 2025, coupled with pricing and enrollment challenges, suggests that Bright Horizons may underperform its growth expectations. Furthermore, the stock’s valuation appears high compared to historical averages, especially given the limited recovery in enrollment figures. Collectively, these factors justify the cautious stance embodied in the Sell rating.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BFAM in relation to earlier this year.