Macquarie rates GEM as Outperform (1) - The 2019 AGM update has indicated trading is in line with expectations. Occupancy has continued to build and management is confident in achieving the upper end of its target range.
While a forecast skew to the second half has dampened sentiment, Macquarie believes it is plausible and consistent with industry feedback.
The broker finds the valuation undemanding and retains an Outperform rating and $3.45 target.
Target price is $3.45 Current Price is $3.06 Difference: $0.39 If GEM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges). Current consensus price target is $3.42, suggesting upside of 11.7%(ex-dividends)The company's fiscal year ends in December.
GEM Price at posting:
$2.94 Sentiment: Buy Disclosure: Held
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