KinderCare Learning price target lowered to $26 from $31 at BMO Capital

BMO Capital lowered the firm’s price target on KinderCare Learning (KLC) to $26 from $31 and keeps an Outperform rating on the shares. The company beat adjusted EBITDA expectations handily owing to SG&A leverage, and while growth was strongest in the Before and After School brand, pricing and some M&A drove modest ECE – early childhood education – growth, the analyst tells investors in a research note. BMO adds however that while it is raising its FY25 EPS view by 19c to 77c and its FY26 view by 14c to $1.02, its price target cut reflects reduced multiples.