FY20 earnings are lower than Credit Suisse expected with a statutory loss of -$230-340m guided, including $370m of after-tax engineering separation costs.
The lower expectations are driven by the timing differences of developments and, in this, the pandemic has had a material impact.
On the positive side, the engineering sale will be completed in FY21 and the broker expects most of the bad news is now behind the company.
Credit Suisse revises FY20, FY21 and FY22 estimates down by -149%, -9.2% and -1.7%, respectively.
Outperform rating maintained. Target is raised to $13.38 from $12.37.
Sector: Real Estate.
Target price is $13.38.Current Price is $12.21. Difference: $1.17 – (brackets indicate current price is over target). If LLC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).