jb were slashes rating on cer & cnp to a hold, page-12

From Swaps post...

"[Dow Jones]: Goldman Sachs JBWere cuts Centro Properties (CNP.AU), Centro Retail (CER.AU) ratings to Sell from Hold in advance of Dec. 15 debt-line expiry. Also cuts CER FY09 and FY10 EPS estimates by 8.9% to 11.5 cents and by 19% to 10.7 cents on higher vacancies and interest rate expense assuming it extends its credit. Keeps 29 cents target on CNP, 14 cents on CER. CNP last trade 6.8 cents, CER 6.7 cents."

Can someone please explain how can they value CER at 14 cents while estimating EPS at 11.5 cents??!!

That's a P/E ratio of 1.22!

Is that 14 cent target valuation supposed to reflect the risk surrounding the debt extension or is that a post extension valuation??