Newly public child care services provider KinderCare Learning has a standout strategy that could boost its profits well into the future, according to Goldman Sachs.
Goldman Sachs led the KinderCare initial public offering at $24 a share last month.
The company also serves families across all income demographics, including those that get subsidies for child care, which broadens its addressable market.
Goldman estimates the domestic child care industry is worth about $76 billion, and predicts it should grow at an annual rate of about 6% long term.
Tong expects KinderCare revenue to top that, rising between 6% and 9%, as it makes acquisitions of smaller providers and further cements its advantages as a large-scale player.
Persons:
Goldman Sachs, George Tong, Tong, Goldman
Organizations:
KinderCare, New York Stock Exchange, Child Care
Locations:
U.S, KinderCare