Bright Horizons Drops as Morgan Stanley Downgrades on Shifting Work Habits By

© Reuters.

By Christiana Sciaudone — Bright Horizons (NYSE:) fell more than 7% after Morgan Stanley (NYSE:) downgraded shares on changing work habits.

Bright Horizons provides day care to, among others, working parents who need occasional support. Working from home has changed those needs, and revenue and profit have accordingly decreased. Nonetheless, Morgan Stanely noted that its a valuation has recovered to pre-pandemic levels.

“With the potential for changing on-site work dynamics post COVID, we think this could result in daycare becoming more local to employee homes and lead to increased competition for BFAM,” said analyst Toni Kaplan, according to StreetInsider. “This may pressure top-line growth and drive multiple contraction for BFAM’s valuation that has recovered to pre-COVID levels.”

Kaplan downgraded Bright Horizons to a sell-equivalent from neutral with a price target of $150 from $153. 

Shares had rallied about 50% over the past 12 months, despite lower sales as a result of the pandemic-driven work from home trend.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button