KinderCare Learning price target lowered to $31 from $34 at BMO Capital

BMO Capital lowered the firm’s price target on KinderCare Learning (KLC) to $31 from $34 and keeps an Outperform rating on the shares after its Q3 results. The company’s adjusted EBITDA topped estimates thanks to the shift in tuition registration fees and some timing benefits, while its management also reiterated its 2024 and longer-term guidance on the call, the analyst tells investors in a research note. BMO adds that as the largest childcare provider in the U.S., KinderCare should benefit from scale in such areas as recruiting teachers and children.