KinderCare Learning initiated with a Buy at UBS

UBS analyst Joshua Chan initiated coverage of KinderCare Learning (KLC) with a Buy rating and $36 price target Driven by gradual enrollment gains, tuition increases above wage inflation, and modest acquisition contribution, the firm expects KinderCare to generate annual EBITDA growth of 13%-14% though 2026. In this process, it expects the company’s EBITDA margins to improve from 10.6% in 2024 to 12.0% in 2026. UBS sees 20%-25% upside in shares over the next year.