Lendlease’s Development Pipeline Shows Greater Promise; FVE Increased to AUD 17.50

Following a series of meetings with management, we have increased confidence in Lendlease Group’s processes around capital allocation and risk management. We’ve made a series of revisions to our forecasts, which include higher return on equity for the development business, increased near-term earnings from asset sales, and a faster rate of growth in assets under management. Following these revisions, our fair value estimate increases to AUD 17.50 from AUD 16.00, with no-moat Lendlease continuing to screen as overvalued at current levels.