Bright Horizons downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Bright Horizons to Market Perform from Outperform with an unchanged price target of $99. The analyst cites valuation for the downgrade following the stock’s recent run-up. Bright Horizons has outperformed since its Q1 earnings release in early May on some improving occupancy metrics and more realistic management commentary regarding the pace of utilization improvements, the analyst tells investors in a research note. However, believe consensus estimates may be too high, especially for 2024, as the company still faces government funding roll-off headwinds for much of next year, contends BMO.