Credit Suisse expected the first half results would be weak, which was confirmed by operating net profit beingdown -86%. Cash flow was weaker because of lower operating earnings as well as net investments since June 2021.
No FY22 guidance was provided yet the expected full-year return on investment has been increased to 7.5-8.5% because of the benefit from the partial sale of the US military asset management business.
Credit Suisse makes no substantial changes to its view, backing management to deliver a normalised year in FY24. Outperform rating maintained. Target is reduced to $12.59 from $12.94.
Sector: Real Estate.
Target price is $12.59.Current Price is $10.31. Difference: $2.28 – (brackets indicate current price is over target). If LLC meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
