BMO Capital analyst Jeffrey Silber maintained a Buy rating on KinderCare Learning Companies Inc today and set a price target of $12.00.
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Jeffrey Silber has given his Buy rating due to a combination of factors that highlight KinderCare Learning Companies Inc’s potential for future growth. Despite a recent miss in adjusted EBITDA expectations, attributed to lower occupancy rates, Silber acknowledges the company’s proactive measures to address these challenges. Management is focusing on improving occupancy, particularly in underperforming regions, which is expected to bolster enrollment figures over time.
Additionally, KinderCare’s position as the largest childcare provider in the U.S. offers significant advantages in terms of scale, particularly in recruiting both teachers and children. This scale is anticipated to support future growth opportunities, even in the absence of additional external factors. Furthermore, the company’s Champions division has shown promising growth, expanding into new states and increasing its revenue, which adds to the positive outlook for the stock.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $14.00 price target.