Centurion: Strong 1Q26 Performance and Growth Visibility Support Buy Rating; RNAV-Based Target Price Maintained at S$1.89

Centurion Corporation Limited, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst William Tng from CGS International reiterated a Buy rating on the stock and has a S$1.89 price target.

William Tng has given his Buy rating due to a combination of factors, including Centurion’s stronger-than-expected 1Q26 performance and solid growth visibility. The company exceeded revenue expectations early in the year, supported by new bed additions and higher rents in its Singapore purpose-built worker accommodation, and management expects a more robust second half as occupancy ramps up at key assets and newly acquired key worker accommodation in Australia begins contributing.

Tng also highlights that, despite rising construction, labour and financing costs pressuring margins, Centurion is mitigating these headwinds through phased development, cost pass-through mechanisms and a focus on higher-yielding assets. He forecasts a 12% compound annual growth rate in core net profit for FY26–28, underpinned by expanding PBWA, KWA and student accommodation portfolios, and maintains an unchanged RNAV-based target price of S$1.89, which supports his continued Buy recommendation.

In another report released on May 12, UOB Kay Hian also maintained a Buy rating on the stock with a S$2.10 price target.

Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OU8 in relation to earlier this year.