Centuria Capital Group's Investor Day Lacks Details on Growth Financing of ResetData Unit, Jefferies Says
Centuria Capital Group's (ASX:CNI) investor day lacked details regarding the long-term financing of its Sovereign AI subsidiary, ResetData, but was reflective of the 35% stock price surge over the last month, Jefferies said in a Tuesday note.The day centered on demonstrating the value of being an Nvidia Cloud Partner, demystifying common thinking around its sovereign AI supercomputer and AI Factory called AI-F1, and how the Centuria Industrial REIT (ASX:CIP) property portfolio can aid in the scale-up.The company also focused on ResetData's growth strategy rather than specific capital expenditure figures, with management expecting a payback period of two to three years on its NVIDIA chip investments.To secure high margins, ResetData maintained that it is avoiding being "the lowest cost producer," focusing on premium, differentiated services bolstered by local sovereign data status and strategic partnerships, Jefferies said.Additionally, the company plans to utilize its property portfolio to bring major new data centers online in Clayton and Thomastown in Victoria by 2029 to 2030.Jefferies reaffirmed its buy rating and AU$2.50 price target on Centuria Capital Group.Centuria Capital Group shares fell 3% in morning trade on Wednesday.
