Morningstar analysts have launched their coverage on Centuria Capital Group (ASX:CNI) with an estimated fair value of A$1.75 per security.

Currently, Centuria’s shares have fallen by 0.7% to A$1.37.

The analysts suggest that the company is undervalued at present, as the market seems to be concentrating on near-term outflow risks while overlooking long-term growth opportunities.

The brokerage firm predicts an annual funds under management growth recovery of 5% for the remaining duration of its 10-year discrete forecast period.

It was noted that Centuria doesn’t possess the economies of scale that larger fund managers like Charter Hall and Goodman Group enjoy.

Out of nine analysts, four rated the stock as ‘buy’ or higher, four as ‘hold’, and one as ‘sell’; their median price target stands at A$1.70, according to LSEG data.

This year, until the last close, the stock has plummeted 19.4%.

Centuria Capital Group is a fund management firm based in Australia.