FY21-23 earnings per security estimates are revised up by 0.3% to 2.4% to reflect recent acquisitions. Credit Suisse considers the company has done a good job in improving the quality of the portfolio.
The broker anticipates a few consecutive periods of earnings growth will help dissipate market perceptions of Centuria Industrial being a “serial equity raiser”.
There is scope for further accretive acquisitions, given the spread of yields over the cost of debt. Neutral maintained. Target is raised to $3.42 from $3.24.
Sector: Real Estate.
Target price is $3.42.Current Price is $3.48. Difference: ($0.06) – (brackets indicate current price is over target). If CIP meets the Credit Suisse target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).