BMO Capital analyst Jeffrey Silber maintained a Buy rating on Bright Horizons (BFAM – Research Report) on February 14 and set a price target of $146.00.
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Jeffrey Silber has given his Buy rating due to a combination of factors surrounding Bright Horizons’ recent performance and future outlook. The company exceeded expectations in its 4Q24 results, particularly in the BUCA segment, which contributed to higher-than-anticipated margins. This strong performance was a key driver in surpassing consensus estimates for adjusted EPS, reflecting effective margin management.
Looking forward, management’s guidance for 2025 has been more optimistic than previous unofficial suggestions, signaling confidence in continued growth. The company’s strategic focus on improving underperforming centers and increasing occupancy in mid-tier centers is expected to bolster future performance. Additionally, the UK operations are on a path to breakeven, and the first-time 2025 revenue and operating margin guidance for BUCA show robust growth prospects. These factors collectively support the Buy rating, as they indicate a positive trajectory for Bright Horizons moving into 2025.
In another report released on February 14, Barclays also maintained a Buy rating on the stock with a $160.00 price target.
BFAM’s price has also changed slightly for the past six months – from $136.030 to $128.930, which is a -5.22% drop .