Centurion Corp is poised for growth as it capitalises on a dormitory supply shortage in Singapore, leading to improved rental rates. The company, which specialises in purpose-built workers accommodation (PBWA) and student accommodations (PBSAs), is expected to see a 13% upside in its stock, with a new target price of SGD1.50. This follows an increase from the previous target of SGD1.43, according to a report by analyst Alfie Yeo.
The company’s earnings forecasts have been revised upwards by 4% for FY25 and FY26, and by 5% for FY27. This optimism is driven by the expectation that bed rates will outperform previous assumptions, particularly in the PBWA and PBSA sectors. Centurion Corp’s strategic positioning in both local and overseas properties is seen as a key factor in its anticipated long-term growth.
The report highlights the company’s ability to leverage the current market conditions to enhance its profitability. “We believe Centurion Corp remains well positioned to yield better rental rates in Singapore from the dormitory supply shortage situation,” the report states.
As Centurion Corp continues to expand its footprint, the focus on improving bed rates and capacity is expected to drive its growth trajectory.
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