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.
Sector: Consumer Services.
Target price is $3.45.Current Price is $3.06. Difference: $0.39 – (brackets indicate current price is over target). If GEM meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).