Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
Investing.com - UBS lowered its price target on KinderCare Learning Companies (NYSE:KLC) to $10.00 from $11.00 on Friday, while maintaining a Buy rating on the childcare provider’s stock. The move comes as KLC shares have declined over 77% in the past year, with particularly steep drops of 43% in the last six months, according to InvestingPro data.
The investment bank cited concerns about KinderCare’s enrollment trajectory, which it expects to remain a key focus for investors beyond the upcoming third-quarter results, scheduled for November 19. UBS indicated that while Street estimates for Q3 appear achievable without significant enrollment improvements, there may be risk in the implied Q4 EBITDA guidance based on typical seasonality. The company currently generates $153 million in EBITDA on revenue of $2.69 billion.
UBS has begun trimming its 2026 expectations for KinderCare due to lingering enrollment softness anticipated at the start of the year, along with more conservative margin projections. Despite these concerns, the firm maintained its Buy rating on the stock.
The bank noted that KinderCare’s current valuation of approximately 5 times next twelve months EBITDA appears undervalued for a business of its nature. However, UBS acknowledged that without conviction regarding upward estimate revisions, the path to realizing this intrinsic value "remains more cloudy." InvestingPro analysis suggests the stock is currently fairly valued, with 12 additional exclusive insights available to subscribers, including detailed profitability metrics and growth forecasts.
KinderCare Learning Companies operates childcare centers across the United States, providing early childhood education and care services. The company’s financial health score is rated as "FAIR" by InvestingPro, with analysts expecting a return to profitability this year despite current challenges.
In other recent news, KinderCare Learning Companies reported its earnings for the second quarter of 2025, revealing an earnings per share (EPS) of $0.22, which fell short of the projected $0.26. The company’s revenue also missed expectations, coming in at $700 million compared to the anticipated $705.72 million. These financial results have been a focal point for investors and analysts alike. Following the earnings report, BMO Capital adjusted its price target for KinderCare from $18.00 to $12.00, maintaining an Outperform rating despite the company’s miss on adjusted EBITDA expectations.
BMO Capital attributes this adjustment to lower occupancy rates that affected enrollment figures. Additionally, Barclays downgraded KinderCare from Overweight to Equalweight, citing the disappointing second-quarter results and reducing the price target to $9.00 from $20.00. The downgrade reflects ongoing challenges KinderCare faces in maintaining enrollment levels. These developments are critical for investors monitoring the company’s performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.