Australia's G8 Education hits over 3-year high; Macquarie raises PT

G8 Education

22/12/2023 03:00

(Updates with Macquarie note)
    ** Shares of G8 Education  GEM.AX  rise as much as 11.6% to
A$1.110, set for best day since August 2020 - if gains hold 
    ** Brokerage Macquarie raises price target to A$1.16 from
A$1.09, maintains "neutral" rating
    ** Education services provider expects FY23 operating EBIT
(post-lease) in the range of A$99 mln to A$102 mln vs A$80.3
mln($54.50 mln) reported last year
    ** Macquarie upgrades FY23 earnings-per-share forecast by
4.1% after incorporating current guidance
    ** Says cost control under new management has been effective
in cushioning falling occupancy and general inflation
    ** We would need to see GEM trade at a discount to
historical average to be more positive - Macquarie
    ** Stock hits its highest level since Oct. 25
    ** Stock had fallen about 10% YTD, as of last close

($1 = 1.4916 Australian dollars)

 (Reporting by Rajasik Mukherjee and Shivangi Lahiri in
Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))