Update shared on27 Aug 2025
Fair value Decreased 16%Analysts have revised G8 Education’s price target down from A$1.36 to A$1.15, citing delayed occupancy improvements, heightened legal and reputational risks, and increased uncertainty in the near-term outlook.
Analyst Commentary
- Analysts see improvement in occupancy rates likely not materializing until calendar year 2026.
- Near-term share price upside is viewed as uncertain due to a challenging operating environment.
- Ongoing uncertainty exists around potential liabilities from alleged recent criminal activity.
- Risk profile is viewed to have increased on the back of reputational and legal concerns.
- Downgrade reflects lowered conviction in the stock's performance until greater clarity emerges.
What's in the News
- The Board of Directors authorized a new share buyback plan.
- G8 Education announced a share repurchase program of up to 40,475,307 ordinary shares (5% of issued capital), valid until September 15, 2026, with 771,558,755 shares outstanding.
- The company completed a prior buyback by repurchasing 37,947,379 shares (4.69%) for AUD 49.95 million.
Valuation Changes
Summary of Valuation Changes for G8 Education
- The Consensus Analyst Price Target has significantly fallen from A$1.36 to A$1.15.
- The Future P/E for G8 Education has significantly fallen from 14.73x to 10.83x.
- The Net Profit Margin for G8 Education has risen from 8.03% to 8.56%.
Disclaimer
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