G8 Education Ltd(ASX: GEM)
A note out of UBS reveals that its analysts have retained their buy rating and increased the price target on the childcare centre operator’s shares to $2.80. According to the note, the broker has a few concerns over supply, but believes in time the supply and demand balance will return thanks partly to positive changes in government funding. While I do agree that the new government funding could be a positive for G8 Education, I am a little concerned that it could encourage even more supply in the future. Because of this, I would suggest investors wait to see improvements in G8 Education’s performance before buying its shares.
GEM Price at posting:
$2.29 Sentiment: Buy Disclosure: Held
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