Home / Business and Economy / UBS Sees Bright Horizons Positives Amid Full Service Slump
UBS Sees Bright Horizons Positives Amid Full Service Slump
15 Apr
Summary
- UBS reiterated a Neutral rating with a $93.00 price target.
- First-quarter earnings may beat expectations driven by Backup Care.
- Company faces high activist attractiveness score according to Wolfe Research.
UBS has reiterated a Neutral rating for Bright Horizons Family Solutions, setting a price target of $93.00. The stock is currently trading down 18% year-to-date. Analyst Joshua Chan highlighted an intriguing setup ahead of the company's first-quarter earnings report, scheduled for May 5, 2026.
Full Service enrollment, a persistent drag on the stock, shows no immediate catalyst for improvement. However, UBS anticipates a potential beat-and-raise outcome for the first quarter. This optimism is fueled by Backup Care, which could boost earnings, and a strong share buyback program that might lead to a rare full-year earnings raise post-first quarter.
In other developments, Bright Horizons recently reported fourth-quarter 2025 results that exceeded analyst expectations, with adjusted EPS of $1.15 and revenue of $734 million. Separately, Wolfe Research identified Bright Horizons as having a high activist attractiveness score, suggesting potential vulnerability to shareholder engagement.
Despite concerns about Full Service enrollment, UBS believes the company is strategically shifting focus to Backup Care to improve its narrative over time. The near-term outlook for the stock leading up to the earnings print is viewed positively by UBS.
