Centuria Capital Group shares lift on analyst backing after full-year profit gain
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The news: Centuria Capital shares lifted in afternoon trade as analysts raised their target price on the stock after the real estate fund manager reported a 6.5% increase in full-year operating profit on Tuesday.
The numbers: Shares in Centuria were up 7.2% to $2.30 by 2:02pm AEST.
UBS analysts lifted their 12-month price target on the stock from $1.81 to $2.10 and reiterated ‘neutral’ position on the stock. Macquarie analysts lifted their price target from $1.79 to $2.04 but downgraded their position from ‘neutral’ to ‘underperform’.
The context: Guided growth for FY26 will be underpinned by Centuria’s target of making more than $1 billion worth of real estate acquisitions in FY26 and is considering the launch of new listed vehicles.
UBS analysts said that while Centuria has “elevated gearing across the platform” it also has more leverage to the better operational environment for rental growth amid lower interest rates when compared to the sector average.
Macquarie analysts said that Centuria is “positioned to capitalise inflows into unlisted real estate funds given a scale diversified platform with multiple channels to source equity”.
The sources: UBS research, Macquarie research
