KinderCare Learning downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst George Tong downgraded KinderCare Learning (KLC) to Neutral from Buy with a price target of $6, down from $20. The firm believes the stock’s upside will be limited by declining child care center occupancy rates and slowing revenue growth. KinderCare’s occupancy declines are due to local market dynamics rather than a single factor, making remediation efforts “likely complex and protracted in nature,” the analyst tells investors in a research note.