Centurion Corp price target cut 5% to 86 cents by UOB Kay Hian

Stock Name: Centurion
Company Name: CENTURION CORPORATION LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 0.86

SINGAPORE (Jan 5): UOB Kay Hian has cut its price target for Centurion Corp to 86 cents from 90.5 cents after lowering its earnings forecasts for 2014 to 2016 by 2% to 8%.

The change reflects higher interest costs related to its recent joint venture with Lian Beng Group to build a 7,900-bed workers accommodation and training centre at Jalan Papan, near Jurong Island.

It also factors in "a more conservative" rental and occupancy forecast for Centurion's dormitories in Singapore.