KinderCare Learning Companies (KLC) PT Lowered at BMO Capital After a 'Challenging Quarter'

BMO Capital analyst Jeffrey Silber lowered the price target on KinderCare Learning Companies (NYSE: KLC) to $4.00 (from $6.00) while maintaining an Outperform rating.

The analyst commented: "Challenging Quarter, Though Rebuilding Strategy: Reduce Ests/Tgt; KLC beat adjusted EBITDA expectations on margin strength and the benefit of the extra week. However, management highlighted continued enrollment softness, with occupancy down 340bps y/y and weak across cohorts. The lower FTE starting point this year hurt FY2026 guidance given the de-leveraging weighing most on EBITDA and EPS which were well below prior consensus. Management is seeking to right the ship via center closures and incentivizing directors on growth, though it will take some time. We reduce our estimates and target price."

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