Goldman Sachs Downgrades KinderCare Learning (KLC) to Neutral with $6 PT, Cites Declining Occupancy, Slowing Growth

KinderCare Learning Companies Inc. (NYSE:KLC) is one of the best young stocks with huge upside potential. On October 10, UBS lowered the firm’s price target on KinderCare Learning to $10 from $11 and kept a Buy rating on the shares. The sentiment was posted ahead of the company’s Q3 2025 earnings report as the firm does not expect a material narrative shift coming out of Q3. Additionally, Wall Street estimates for the quarter seem achievable without a major change in enrollment trajectory.

On October 15, Goldman Sachs analyst George Tong also downgraded KinderCare Learning to Neutral from Buy with a price target of $6, down from $20. Goldman Sachs believes that the stock’s upside will be limited due to declining child care center occupancy rates and slowing revenue growth. The company’s occupancy declines are due to local market dynamics rather than a single factor.

KinderCare Learning Companies Inc. (NYSE:KLC) provides early childhood education and care services in the US. The company operates community-based early childhood education centers under the KCLC brand, and community-based early child care and education schools under the Creme School brand.

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Disclosure: None. This article is originally published at Insider Monkey.