JPMorgan Starts KinderCare Learning Companies (KLC) at Overweight

JPMorgan analyst Andrew Steinerman initiates coverage on KinderCare Learning Companies (NYSE: KLC) with a Overweight rating and a price target of $31.00.

The analyst comments: "KinderCare is the largest U.S. provider in the early childhood education (ECE) industry, with over 1,500 centers serving infants from 6 weeks old to children ages 5 to 6 years old before they start kindergarten. The ECE industry serves a public good by providing a safe and educational environment for children to support working parents. U.S. expenditures on childcare, day care, and nursery schools have grown at an annual CAGR of 6.9% over 2013-2Q24. Covid-19 had a devastating impact on the ECE industry, with most operators forced to temporarily close during the pandemic and many teachers furloughed. It has taken multiple years for the childcare industry to recover from the impact of Covid-19, with this September 2024 being the first near-normal back-to-school enrollment period for the industry post-Covid. Large ECE providers including KinderCare have made investments in their recruiting programs, training and development programs, technology, and teacher wages to build back their business. By the end of 2023, KinderCare’s portfolio of centers had recovered to its pre-pandemic occupancy rate (%) level. We think KinderCare is at a turning point when the management team can now focus on the growth ahead."

For an analyst ratings summary and ratings history on KinderCare Learning Companies click here. For more ratings news on KinderCare Learning Companies click here.

Shares of KinderCare Learning Companies closed at $28.32 yesterday.

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