KinderCare Learning downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded KinderCare Learning (KLC) to Equal Weight from Overweight with a price target of $9, down from $20. KinderCare’s Q2 report contributed to its poor start as a public company, the analyst tells investors in a research note. The firm cites further weakness in the company’s enrollment and utilization as well as slight misses across other key metrics for the downgrade. The stock’s multiple “likely impaired” and catalysts to drive materially higher estimates are low, contends Barclays.