Centurion Corporation Limited, the Consumer Cyclical sector company, was revisited by a Wall Street analyst on July 21. Analyst William Tng from CGS-CIMB reiterated a Buy rating on the stock and has a S$2.05 price target.
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William Tng has given his Buy rating due to a combination of factors that highlight Centurion Corporation Limited’s growth potential and strategic initiatives. The launch of the Epiisod brand, which targets the upscale student accommodation market, is a significant move. This new development, located near Macquarie University in Sydney, aims to attract international students with its premium facilities and wellness-oriented living spaces, capitalizing on the increasing number of international students in Australia.
Another factor influencing the Buy rating is the proposed spin-off of the Centurion Student Accommodation REIT (CAREIT), which is expected to unlock significant value for shareholders. By monetizing mature assets and focusing on stable income-generating properties, CENT aims to enhance its growth trajectory. The analyst also notes the strong demand for purpose-built workers’ accommodation in Singapore and Malaysia, as well as the tight supply of student housing in Australia and the UK, which further supports the positive outlook. The shift to a pure RNAV valuation approach and the expected increase in earnings per share due to new developments also contribute to the higher target price of S$2.05.
In another report released on July 21, Phillip Securities also maintained a Buy rating on the stock with a S$1.88 price target.