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.
