MENU

Is G8 Education Ltd in the bargain bin?

According to UBS, childcare centre operator G8 Education Ltd (ASX: GEM) should be on your buy list this week.

UBS has slapped a buy rating on the stock citing its recent share price slump is due to a growth in industry supply for 2018 coming up against a drop in demand, but the broker says the response is “overdone”.

G8 Education shares have dropped down 49.5% from December 2017 highs of $4.42 to today’s price of $2.23.

The UBS broker has revised forecasts for softer occupancy in FY18 and lowered its target price on the stock from $3.95 to $2.75, but has maintained a buy rating on G8, which certainly gives investors stalking the stock something to think about.

Education stock investors would no doubt have checked out Navitas Limited (ASX: NVT) lately, which has been rated as underperforming by Credit Suisse, with a $4.00 price target after disappointing first semester growth.

Another one for the watchlist in the space is Idp Education Ltd (ASX: IEL), which although down slightly today to $7.60 at the time of writing, has had a good upswing in share price over the past 12-months with clear growth opportunities on the horizon.

The Richest Man Alive Invests in This

The richest man in the world has just launched a $100 million investment fund and investors who don't take note could miss out on a massive opportunity.

And it isn't by sheer luck. He did it by looking to the future and investing in the big ideas of tomorrow.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended G8 Education Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!