KinderCare Learning Companies Inc, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Joshua Chan from UBS downgraded the rating on the stock to a Hold and gave it a $4.50 price target.
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Joshua Chan has given his Hold rating due to a combination of factors impacting KinderCare Learning Companies Inc. The recent reduction in guidance highlights the challenges the company faces with declining enrollment and pricing pressures, which are adversely affecting profitability. The outlook for the fourth quarter appears weak, with revenue reductions translating into significant EBITDA margin declines.
Looking ahead to 2026, the company is expected to continue facing difficulties with occupancy and pricing, potentially leading to further margin pressures. The adjusted EBITDA guidance for 2025 has been significantly lowered, reflecting a challenging environment. Consequently, the price target has been reduced, indicating a continued deterioration in earnings prospects, which supports the Hold rating.
In another report released today, Morgan Stanley also downgraded the stock to a Hold with a $6.00 price target.