Islay, there was a thread of discussion last year about UBS' outlier target price, including possible reasons why they cited such a high price. Their prediction was clearly out of line. But your implication here is correct that brokers were over enthusiastic about GEM's target price.
Incidentally, this gap is due partly to reduced acquisition growth (thanks to Affinity's premuim price buying, apparently). It was also due to downward re-rating of GEM and probably most ASX stocks since then. GEM's current (Jan16) forward PE is 13.7. In contrast, its PE on 22 Jan 2015 was 19.8. (Share price on 22 Jan15 was $3.85.) If GEM held the same forward PE now, its current price would be $4.91.
Islay, there was a thread of discussion last year about UBS'...
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Last
$1.17 |
Change
0.010(0.86%) |
Mkt cap ! $902.7M | |||
| Open | High | Low | Value | Volume |
| $1.16 | $1.17 | $1.15 | $4.420M | 3.783M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 149521 | $1.17 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.18 | 100276 | 6 |
View Market Depth
| Last trade - 16.10pm 20/06/2025 (20 minute delay) ? |
| GEM (ASX) Chart |