DBS Group Research analysts Woon Bing Yong and Lee Keng Ling have kept a “hold” rating on Centurion Corporation with an increased target price to 42 cents from 38 cents. DBS will also be suspending coverage on the stock as it reallocates research resources.
In light of increased global opening as restrictions due to the Covid-19 pandemic ease, Singapore’s purpose-built worker accommodation (PBWA) occupancies are expected to improve progressively over FY2022 ending December 2022 and FY2023. According to a senior government official, this comes at a point where the foreign labour crunch is targeted to be resolved in the next few months as well.
At the same time, a new academic year coupled with the relaxation of border restrictions in Australia and the UK should mark a point of recovery for student arrivals and thereby purpose built student accommodation (PBSA) occupancies, the analysts expect.