2227 GMT - Canaccord says the surge in new childcare centers in Australia means G8 Education (GEM.AU) is no longer best in class. The broker drops G8 to hold from buy and cuts its price target by 12% to A$3.80/share, noting that 45 of 113 centers opening in the three months through March were near G8 sites. "If this trend continues, in addition to having an impact on sentiment, the supply may have an impact on G8 Education's ability to grow organically," Canaccord says. Its 2017 and 2018 EPS forecasts fall 3.3% and 6.7%, respectively. GEM last traded at A$3.73. ([email protected]; @dwinningWSJ)
GEM Price at posting:
$3.45 Sentiment: Hold Disclosure: Held
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