Childcare

Brokers expect strong growth in returns from Think Childcare over the next few years.

Steven Everett of Belvedere Share Managers shares his perceptions of the changes being made by new management at G8 Education.

Brokers are looking forward to a better performance from G8 Education in 2019 as occupancy levels stabilise and supply pressures ease.

An impressive update from child care centre operator Think Education has brokers lining up their Buy ratings after a tough year for the industry.

Benefits of government subsidy increases are likely to be constrained in the near term for childcare centres, as supply is overwhelming demand.

G8 Education is intent on improving its occupancy ratios, although brokers suggest it may be 2019 before demand/supply becomes more balanced.

G8 Education is transforming its operations to take advantage of an expected improvement in industry dynamics.

A slump in occupancy and higher costs have driven G8 Education to downgrade earnings. Many brokers consider the drop in the share price presents an opportunity.

Michael Gable of Fairmont Equities suggests a breakout for G8 Education could take the stock back above $5.

FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts. Canaccord Genuity has downgraded G8 Education as the addition of new child care supply accelerates.