After the business update, Macquarie suggests value is emerging although negative earnings momentum needs to be dealt with and visibility needs to improve.
The broker suspects there could be more negative news before the market can focus on the medium-term growth outlook.
FY21 guidance for underlying earnings is below forecasts, at $392m. Macquarie also suspects there is potential for further weakness although the absence of write-downs in FY22 should be a positive starting point. Target is reduced to $11.47 from $12.99.
Sector: Real Estate.
Target price is $11.47.Current Price is $11.18. Difference: $0.29 – (brackets indicate current price is over target). If LLC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
