Centurion kept at ‘buy’ by DBS with higher target price of 59 cents

SINGAPORE (Nov 5): DBS Group Research is maintaining its “buy” call on Centurion Corp, the builder and operator of workers’ and students’ dorms, with a target price of 59 cents on “better things to come.”
In a Friday note, analyst Rachael Tan says “We believe that Centurion’s purpose-built dormitory business is scalable, particularly in economic areas which rely heavily on foreign-sourced workers. Given its success in executing its aggressive bed growth strategy so far, we are optimistic about the Group’s long-term potential.”

Centurion currently owns and operates close to 45,000 purpose built-foreign worker dormitory beds in Singapore and Malaysia, making it one of the largest purpose-built dormitory operators in the region.

“With an additional c.35k beds in the pipeline, we expect a 16% CAGR in bed count from 2015-2017,” says she.

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