KinderCare Learning downgraded to Neutral from Outperform at Baird

Baird downgraded KinderCare Learning (KLC) to Neutral from Outperform with a price target of $1.50, down from $8. The firm says the company’s forward estimates continue to materially fall following its EBITDA guidance. KinderCare’s EBITDA and margin deleveraging is much worse than previously modeled, the analyst tells investors in a research note. Baird believes that while the previously announced CEO change “provides some hope, but there likely aren’t quick fixes.”