Analyst Adrian Loh from UOB Kay Hian maintained a Buy rating on Centurion Corporation Limited (OU8 – Research Report) and increased the price target to S$1.70 from S$1.48.
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Adrian Loh has given his Buy rating due to a combination of factors that highlight Centurion Corporation Limited’s strong market position and growth prospects. The company is a leading provider of purpose-built workers’ accommodation in Singapore and Malaysia, and it also has a significant presence in student accommodation in Hong Kong and the UK. This diverse portfolio positions Centurion well to capitalize on the booming construction industry in Singapore, driven by government megaprojects and robust rental growth.
Furthermore, the Monetary Authority of Singapore’s (MAS) S$5 billion equity market injection is expected to benefit Centurion, enhancing its visibility among institutional investors. The company’s strong reputation as a competent accommodation manager, coupled with its safe and reliable operations, adds to its appeal. These factors, along with the potential for a REIT spin-off and higher-than-expected rental reversions, have led to an increase in the target price to S$1.70, reflecting confidence in Centurion’s continued earnings growth and market resilience.
According to TipRanks, Loh is a 5-star analyst with an average return of 16.2% and a 60.38% success rate. Loh covers the Industrials sector, focusing on stocks such as Sembcorp Industries, Yangzijiang Shipbuilding (Holdings), and Keppel Corporation Limited.