Bright Horizons upgraded to Outperform from Market Perform at BMO Capital

BMO Capital analyst Jeffrey Silber upgraded Bright Horizons (BFAM) to Outperform from Market Perform with a price target of $125, down from $137. The stock has been weak since the Q3 earnings report, as while beating expectations management cited slightly slowing sales growth which could impede margin expansion, the analyst tells investors in a research note. Investors have asked about the potential Trump impact, though the positives of increased tax credits outweigh negatives from limited immigration impacting hiring trends, the analyst tells investors in a research note. BMO acknowledges the concerns and slightly reduced estimates, but believes the recent selloff provides an attractive entry point.