FN Arena Daily GEM - G8 EDUCATION LIMITEDMacquarie rates GEM as...

FN Arena Daily

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GEM - G8 EDUCATION LIMITEDMacquarie rates GEM as Neutral (3) - Of the 25 child care centre acquisitions announced by G8 in August, 8 had not settled by the expected January date. G8 cites red tape issues beyond its control. With settlement not expected until November, the broker has adjusted forecasts to reflect expected earnings now lost in the interim.Target falls to $4.80 from $4.93. The broker retains Neutral, citing concern over increasing competition, regulatory uncertainty and diminishing capital management options.Target price is $4.80 Current Price is $3.36 Difference: $1.44 If GEM meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).The company's fiscal year ends in December. Macquarie forecasts a full year FY15 dividend of 24.00 cents and EPS of 27.60 cents . At the last closing share price the estimated dividend yield is 7.14%.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17.Market Sentiment: 0.4How do these forecasts compare to market consensus projections?Current consensus EPS estimate is 27.9, implying annual growth of 72.5%.Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 7.6%.Current consensus price target is $ 5.27, suggesting upside of 57.0%(ex-dividends).Current consensus EPS estimate suggests the PER is 12.1.