Macquarie has significantly downgraded its target price for G8 Education, cutting it by 25 per cent from $1.53 to $1.15. This decision follows the revelation that a former employee, Joshua Dale Brown, has been charged by Victoria Police with multiple offences related to the abuse of eight children. G8 Education is an Australian provider of early childhood education and care services, operating numerous centres across the country. The company aims to provide high-quality education and care in a safe and nurturing environment.
Brown’s employment history includes work at 20 different centres since 2017, four of which are operated by G8 Education. The majority of the other centres are run by Affinity Education, owned by Quadrant Private Equity. Health officials have requested that 1200 families have their children tested for sexually transmitted diseases due to the nature of the alleged offences.
Macquarie cited high uncertainty regarding the potential reputational and financial impacts of the incident. The firm also noted that G8 Education’s year-to-date occupancy as of April 2025 was down 3 per cent compared to the previous year. This decline in occupancy, coupled with the reputational damage, contributes to the revised target price.
In response to the news, G8 Education’s shares experienced a downturn. As of 1.50pm AEST on Thursday, G8 Education’s share price had dropped by 6.5 per cent to $1.01, reflecting investor concern over the potential consequences of the charges and the occupancy downturn.
