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).
