Tag: ASX:LLC

Lendlease has switched to Algo Engine buy conditions and has now been added to our ASX 100 model portfolio.

Lendlease has switched to Algo Engine buy conditions and has now been added to our ASX 100 model portfolio.

Lendlease LLC reported FY20 NPAT of -$310m. The sale of the engineering business unit to Acciona is expected to complete soon with a sale of $160m, lower than the original $180m announced.

Lendlease is facing subdued trading conditions as the company navigates the effects of COVID-19, with development, investment, and construction income all down over 50% for the June period.

Despite short-term uncertainty, the long-term value remains attractive and the company’s strong balance sheet should provide it with resilience.

Lendlease announced a raising of up to $1.15bn  $9.80 per share.

The equity raising comprises a fully underwritten $950m institutional placement, along with up to $200m via a non-underwritten SPP.  With the proceeds from the placement, liquidity will increase to $4bn and company gearing will fall to 10-15%, (assuming completion of the sale of the Engineering business).

A correction in commercial real estate will provide new opportunities for Lendlease but will also ensure a tough operating environment in the near-term.

Lendlease is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

The stock is also part of our ASX “high conviction” portfolio.

Lendlease  is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

Buy LLC at $17.80

Lendlease should be added to your watchlist.

We see value at $16.50

Lendlease is under Algo Engine buy conditions.

We remain bullish on the urban redevelopment business model and are further encouraged by the announcement LLC has entered into an agreement with Acciona to sell its engineering business for $180 million.

Buy $17.80

Lendlease is under Algo Engine buy conditions and the recent retracement in price from $20 to $18 provides another entry opportunity.

We expect buying interest to increase between $16.50 – $18.00.

Lendlease looks attractive from a long-term valuation basis, especially relative to other opportunities within the real estate sector.

Although the share price may remain weak until a solution for Engineering &
Services is achieved, we feel the negatives are already priced in.

Based on FY20 earnings, we have the stock trading on a forward yield of 5%.