Citi believes Lendlease has the potential for a multi-year re-rating as it evolves into a global real estate developer and fund manager. Critical to this is the sale of the engineering & services business.
The broker notes an $80bn urbanisation pipeline provides a five-year period of increased development activity and funds under management are likely to exceed $60bn in 2025 from an increase in recurring earnings.
Citi maintains a Buy rating and raises the target to $24.72 from $19.30.
Sector: Real Estate.
Target price is $24.72.Current Price is $19.43. Difference: $5.29 – (brackets indicate current price is over target). If LLC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
