J.P. Morgan Reiterates Neutral Rating on Bright Horizons Family Solutions on Healthy 2013 Outlook
In a report published Friday, J.P. Morgan analyst Jeffrey Y. Volshteyn reiterated his Neutral rating and $30.00 price target on Bright Horizons Family Solutions (NYSE: BFAM).
In the report, Volshteyn noted, “Wednesday afternoon, Bright Horizons (BFAM) reported its 4Q12 adj. net income of $7.8mln vs. our est. of $6.7mln. Mgmt guided for 2013 organic revenue growth of 6%-8% (vs. our estimate of 7%), reflecting healthy business trends, and an additional 1%-3% of acquired revenue growth (vs. our 2% est). Notably, mgmt provided a long list of metrics for 1Q13 and 2013, reflecting the impact of its recent IPO and refinancing. We are slightly tweaking up our estimates. While we like BFAM's positioning in the employer-sponsored child care segment, we believe that current valuation fairly reflects BFAM's growth prospects. We would recommend adding to a BFAM position on a pullback.”
Bright Horizons Family Solutions closed on Thursday at $33.04.
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