Morgan Stanley rates LLC as Equal-weight

Published: 2025-05-19 20:30:07 ET MS

Published on 05/19/2025 at 20:30

Lendlease Group is progressing with its asset sales strategy, with $2.5bn contracted so far vs the target of $2.8bn by FY25.

The asset mix has, however, changed with the latest being the divestment of a 50% stake in six UK projects for $300m that were originally flagged for FY25-28 and beyond. Morgan Stanley considers the deal a good outcome as it effectively crystallises half of the asset outcomes instead of years.

The company has retained vertical development options in the projects, which the broker thinks is an interesting strategy.

Equal-weight. Target unchanged at $7.12.

Sector: Real Estate.

Target price is $7.12.Current Price is $5.51. Difference: $1.61 - (brackets indicate current price is over target). If LLC meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).