FY19 development results, up 18%, were ahead of UBS estimates while construction, down -29%, was worse. Importantly, the company has announced no further provisions in engineering & services, noting the sales process is progressing.
In the event of a successful sale, the broker expects a material re-rating, as the market re-focuses on development and investment management. Buy rating maintained. Target rises to $16.30 from $15.70.
Sector: Real Estate.
Target price is $16.30.Current Price is $15.80. Difference: $0.50 – (brackets indicate current price is over target). If LLC meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
