UBS Lowers KinderCare Learning Price Target to $11 with 'Buy' Rating

UBS analyst Joshua Chan maintains a 'Buy' rating for KinderCare Learning (KLC) with a lower price target of $11.00, a 45% decrease from the previous target of $20.00. Other analysts have made similar adjustments, with Goldman Sachs lowering its target to $20.00 and BMO Capital reducing its target to $12.00. KinderCare Learning is a private provider of early childhood education and care services in the US, serving children from 6 weeks to 12 years old.

Goldman Sachs has recently lowered its price target for KinderCare Learning (KLC) to $20, maintaining a "Buy" rating [1]. This adjustment marks a 13.04% decrease from the previous target of $23.00. The firm's decision reflects ongoing concerns about KinderCare's performance, as indicated by mixed financial reports and lower occupancy rates [2].

UBS analyst Joshua Chan has also maintained a 'Buy' rating for KinderCare Learning, but with a significantly lower price target of $11.00. This represents a 45% decrease from the previous target of $20.00 [3]. Other analysts have made similar adjustments. Goldman Sachs lowered its target to $20.00, and BMO Capital reduced its target to $12.00 [1].

KinderCare Learning provides early childhood education and care services in the US, serving children from 6 weeks to 12 years old across 1,480 centers with a capacity of over 194,000 children [4]. The company's second-quarter 2025 earnings revealed an earnings per share (EPS) of $0.22, falling short of the forecasted $0.26, and revenue totaling $700 million, which missed expectations [5].

Despite these challenges, KinderCare has outlined several initiatives aimed at improving occupancy and center-level performance. The company expects 2025 revenue between $2.75 billion and $2.8 billion, with adjusted EBITDA ranging from $310 million to $320 million [6]. However, the firm anticipates occupancy declines of 1-1.5% for the year.

Analysts' adjustments reflect the ongoing concerns for investors regarding KinderCare's future performance. The company's stock has declined significantly over the past year, with shares trading at $7.53, significantly below the fair value estimate [7]. The recent legislative developments, such as the Child Care and Development Block Grant Act, may provide some support for the company's performance [8].

References:
[1] https://www.ainvest.com/news/goldman-sachs-lowers-kindercare-learning-price-target-20-maintains-buy-rating-2508/
[2] https://www.investing.com/news/analyst-ratings/kindercare-learning-stock-price-target-lowered-to-12-at-bmo-capital-93CH-4188819
[3] https://www.tipranks.com/news/the-fly/kindercare-learning-price-target-lowered-to-14-from-15-at-morgan-stanley-thefly
[4] https://www.benzinga.com/insights/analyst-ratings/25/08/47103466/forecasting-the-future-8-analyst-projections-for-kindercare-learning
[5] https://www.investing.com/news/analyst-ratings/kindercare-learning-stock-price-target-lowered-to-12-at-bmo-capital-93CH-4188819
[6] https://www.ainvest.com/news/kindercare-narrows-2025-outlook-2-75b-2-8b-revenue-occupancy-guidance-continued-b2b-growth-2508/
[7] https://www.investing.com/news/analyst-ratings/kindercare-learning-stock-price-target-lowered-to-12-at-bmo-capital-93CH-4188819
[8] https://www.ainvest.com/news/kindercare-narrows-2025-outlook-2-75b-2-8b-revenue-occupancy-guidance-continued-b2b-growth-2508/