Baird analyst Jeffrey Meuler upgraded Bright Horizons (BFAM) to Outperform from Neutral with an unchanged price target of $140. The recent material pullback in shares yields an attractive valuation, the analyst tells investors in a research note. The firm says Bright Horizons’ “excellent” Back-Up Care business is continuing to perform well “with good runway” while Full Service is continuing to recover with material incremental margin recovery potential. Combined, this should result in strong consolidated growth, while significant relative valuation multiple expansion seems possible if Full Service margins significantly recover, contends Baird.
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Read More on BFAM:
- Bright Horizons upgraded to Outperform from Market Perform at BMO Capital
- Bright Horizons price target raised to $108 from $100 at Morgan Stanley
- Bright Horizons price target raised to $140 from $131 at Baird
- Bright Horizons Reports Strong Q3 2024 Earnings
- Bright Horizons reports Q3 EPS $1.11, consensus $1.06