GEM - UBS rates the stock as Buy
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Industry supply for 2018 is expected to grow 3-3.5% and remain higher than growth in demand. As a result occupancy is not improving, counter to former expectations.
The broker considers the valuation undemanding and, while the downgrades have been disappointing, the share price reaction is overdone. UBS revises forecast to allow for softer occupancy in FY18 and incorporates no organic growth.
A Buy rating is maintained. Target is lowered to $2.75 from $3.95.
Sector: Consumer Services.
Target price is $2.75.Current Price is $2.31. Difference: $0.44 - (brackets indicate current price is over target). If GEM meets the UBS target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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