UBS observes the occupancy gap compared with 2019 has continued to narrow. The recent additional funding from the federal budget is also considered to be another opportunity.
The broker continues to regard FY21 as the year when the hard yards will be done and the real benefit flow through in FY22-23. If the company can execute effectively the broker suggests a relatively strong re-rating is warranted. Buy rating and $1.30 target unchanged.
Sector: Consumer Services.
Target price is $1.30.Current Price is $0.97. Difference: $0.33 – (brackets indicate current price is over target). If GEM meets the UBS target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
