Jefferies downgraded Bright Horizons (BFAM) to Hold from Buy with a price target of $135, down from $146. The firm sees the company’s enrollment plateauing, driven by structural changes like hybrid work, universal pre-kindergarten, and pricing fatigue by parents. Moreover, Bright Horizons’ adjusted operating margin will remain pressured, below pre-COVID levels in the medium term, the analyst tells investors in a research note. Jefferies also believes the company’s margin recovery will likely be muted.
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