Deutsche Bank believes the business may be underperforming peers. The company’s competitive position is a bigger driver of profitability than the macro environment.
Occupancy growth at the start of 2019 appears lower than peers and could represent a slowing of momentum from the December half, the broker suggests.
Deutsche Bank downgrades to Sell from Hold, suspecting that consensus is giving the company the benefit of the doubt on improvements in occupancy and assuming around 10% growth in revenue. Target is $2.70.
Sector: Consumer Services.
Target price is $2.70.Current Price is $3.30. Difference: ($0.60) – (brackets indicate current price is over target). If GEM meets the Deutsche Bank target it will return approximately -22% (excluding dividends, fees and charges – negative figures indicate an expected loss).