Bright Horizons stock price target lowered to $112 by UBS

Investing.com - UBS lowered its price target on Bright Horizons Family Solutions Inc (NYSE:BFAM) to $112.00 from $138.00 while maintaining a Neutral rating on the stock. The $5.6 billion market cap company currently trades at a P/E ratio of 32.5x, according to InvestingPro data.

The firm expects Bright Horizons’ third-quarter results, due on November 4, to align with consensus estimates, with its Backup Care segment likely to be a highlight amid more mixed performance in the Full Service division. With revenue growth of 9.25% in the last twelve months, UBS also anticipates the company might slightly increase its full-year earnings per share guidance.

UBS expressed surprise at the recent decline in Bright Horizons’ stock price, noting that the current valuation "seems intriguing." The stock is trading near its 52-week low of $98.03, with technical indicators suggesting oversold conditions. Despite this, the firm remains cautious about the company’s outlook. InvestingPro analysis reveals 8 additional key insights about BFAM’s valuation and momentum.

The analyst cited moderating enrollment growth and persistent revenue headwinds from center count as key concerns. UBS indicated that greater conviction in enrollment growth stability and improved visibility on center count growth would likely be necessary for the stock to perform better.

While acknowledging that valuation represents the primary bull case for Bright Horizons shares, UBS stated it prefers to see "more fundamental conviction before becoming more constructive" on the stock.

In other recent news, Bright Horizons Family Solutions Inc. reported impressive financial results for the second quarter of 2025. The company exceeded analysts’ expectations with an adjusted earnings per share (EPS) of $1.07, surpassing the anticipated $1.01. Revenue also outperformed projections, reaching $732 million, marking a 9% increase compared to the previous year. These results highlight the company’s strong performance in the recent quarter. Despite the positive earnings report, the stock experienced a slight decline in after-hours trading. Additionally, there have been no recent reports of mergers involving Bright Horizons. Analyst updates on the company’s stock rating have not been reported in the latest developments. These financial results offer investors insight into the company’s current performance and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.