Lend Lease (LLC) | Government backed recovery - maintain Quant Buy ($17) | We maintain LLC as a Quant BUY while upgrading the Quant Target Price (QTP) to...
Lend Lease (LLC) | Government backed recovery - maintain Quant Buy ($17) | We maintain LLC as a Quant BUY while upgrading the Quant Target Price (QTP) to $17.00. Forward PE band valuations (FIG.1) shows that LLC is trading just above fair value (i.e. 12.55 PE or $14.07). We continue to see US/China driven global recovery, stimulus from Europe and domestic government driven local recovery to help re-rate LLC higher. G20 growth upside further supports the global construction model of LLC. LLC is expected to deliver a yield of 4.3%, 12 PE, EPS growth of 14.2% with improving ROE in 2016. The QTP was set at 1 standard deviation premium to fair value due to the growth and yield outlook. LLC is a diversified global company that delivers above bond yield and exposure to global/local construction recovery. (VIEW LINK)
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