Buy Bright Horizons Stock. Its Daycare Business Is Growing.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 30 2024
0mins
Source: Barron's
Company Overview: Bright Horizons Family Solutions is a leading corporate child care provider with over 1,000 centers globally, focusing on partnerships with employers to offer subsidized child care as part of employee benefits. The company is recovering from the pandemic, with expectations for increased utilization rates and earnings growth in the coming years.
Market Position and Growth Potential: Bright Horizons has a strong business model supported by long-term contracts with clients, a high renewal rate, and a digital platform for ease of use. Analysts predict significant revenue growth and improved profit margins as enrollment returns to pre-Covid levels, making it an attractive investment opportunity.
Analyst Views on BFAM
Wall Street analysts forecast BFAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BFAM is 131.86 USD with a low forecast of 93.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 93.950
Low
93.00
Averages
131.86
High
160.00
Current: 93.950
Low
93.00
Averages
131.86
High
160.00
About BFAM
Bright Horizons Family Solutions Inc. is a provider of early education and childcare, back-up care, and workforce education services. It partners with employers to support workforces by providing services that help working families and employees thrive personally and professionally. Its segments include full service center-based child care, back-up care, and educational advisory services. The full service center-based child care segment includes the traditional center-based early education and child care, preschool, and elementary education. Its back-up care segment consists of center-based back-up child care, in-home care for children and seniors, school-age programs, pet care, self-sourced reimbursed care, and Sittercity, an online marketplace for families and caregivers. Its educational advisory services segment consists of tuition assistance and student loan repayment program management, workforce education, related educational advising, and college admissions counseling services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
