In examining the balance sheet and cash flow, Credit Suisse does not believe an equity raising is required at this stage.
An equity raising is likely to require events such as failure to sell targeted developments, construction activity coming to a halt or, to a lesser extent, a decline in investment income.
The broker downwardly revises FY20 and FY21 forecasts for earnings per share by -13.3% and -8.3% respectively. Target is lowered to $15.41 from $19.85 and an Outperform rating is maintained.
Sector: Real Estate.
Target price is $15.41.Current Price is $11.71. Difference: $3.70 – (brackets indicate current price is over target). If LLC meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
