G8 Education shares continue slide after Macquarie downgrade
Make us a preferred source
Make us a preferred source on Google
The news: Shares in early childhood and care provider G8 Education have fallen following a downgrade by Macquarie analysts as the company faces a challenging outlook and a former employee was charged with sexual assault offences involving children.
The numbers: G8 Education’s share price had fallen 7.3% to $1.00 at 2:16pm AEST and is about 15% lower since market close on 30 June, the last day prior to news of the investigation into former G8 employee Joshua Brown.
Macquarie analysts downgraded their position on the stock from ‘outperform’ to ‘neutral’ and lowered their target price from $1.53 to $1.15.
The context: In a research note, Macquarie analysts flagged that G8 Education’s occupancy rates had suffered. As of 20 April GEM’s year to date occupancy was 64.1%, which was 3% lower year-on-year and had deteriorated 1.9% from 16 February 2025.
Although the analysts expect 2026 occupancy to be more positive, driven by the abolishment of the activity test for the federal government’s childcare subsidy, G8 is also involved in a police investigation into Brown.
Brown has been charged with sexual assault and producing child abuse material relating to eight victims at G8’s Creative Garden Early Learning Centre in Point Cook, Melbourne.
“There is high uncertainty concerning the quantum of potential reputational or financial impacts the incident could create,” the Macquarie research note said.
The source: Macquarie research
