KinderCare Learning upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded KinderCare Learning (KLC) to Overweight from Equal Weight with an unchanged price target of $30. The firm sees the recent decline in the share price as an attractive entry point. KinderCare has declined 28% month-to-date following competitor Bright Horizons Family Solutions’ (BFAM) earnings report which included revenue deceleration both in the quarter and in the outlook, the election results – which brings potential for some uncertainty given the company’s large government subsidy exposure, and its earnings release which lacked further guidance, the analyst tells investors in a research note. Morgan Stanley finds the selloff overdone, saying “not much has actually changed” with regard to KinderCare’s fundamentals.