LLC – Credit Suisse rates the stock as Outperform

Lendlease Group’s FY21 operating profit guidance of $375-$410m was below Credit Suisse’s expectation for $474-460m. Management explained negative covid impacts, especially in the UK, were largely responsible.

The company was unable to forward sell one tower, and then there were profit claw-backs on two built-to-rent towers. However, while awaiting more detail, the broker doesn’t feel the Construction and Investment segments are going to be materially worse than expected.

The analyst lowers FY21-FY23 operating EPS forecasts by -16.1%,-15.3% and -11.8% and lowers the target price to $12.94 from $13.47. Credit Suisse continues to see long-term value for patient investors.

Sector: Real Estate.

 

Target price is $12.94.Current Price is $11.14. Difference: $1.80 – (brackets indicate current price is over target). If LLC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →