Lendlease Share Price Drops Again after Ratings Downgrade

At time of writing, the share price of Lendlease Group [ASX:LLC] is down in value by 5.2%, trading at $12.65 per share.

This marks another steep drop for Lendlease’s share price after a year that saw shares in the company trade at $21.73 on 8 August:

Lendlease Share Price

Source: marketindex.com.au

While yesterday the price movement was driven by underperformance of its engineering and services units, today Lendlease has taken another hit based on a ratings downgrade.

While Lendlease may be suffering, there are plenty of ASX-listed infrastructure companies that will do better this year. Get the names by downloading our free report here.

Credit Suisse ratings downgrade forces Lendlease share price lower

Today, Credit Suisse downgraded its rating of the property manager from outperform to neutral.

Credit Suisse noted that it would take more than three years in addition to improved profitability levels for investors to start to see value in the stock again.

Lendlease shares have been changing hands rapidly with over 11 million shares trading hands so far today.

Lendlease’s future hinges on restructuring business

Investors will be looking for Lendlease announcements with regards to its engineering and services units, hoping the company will restructure to avoid further losses.

Lendlease has already announced that it will write down $350 million from its 2019 HY results due to the performance of these two business units.

With slowdown reported on the Melbourne Metro project, it is possible that further write-downs could occur.

Investors may want to look for better returns from other infrastructure companies for now.


Lachlann Tierney,
For Money Morning

PS: Australia’s $70 billion infrastructure boom could benefit a number of ASX-listed companies. Download our free report to get the names.

Lachlann Tierney is a writer for Markets & Money. He has lived and studied in the US, the UK, and Australia. With an MSc from London School of Economics (LSE) he brings a strong grasp of geopolitics and world affairs to his analysis. Lachlann is always on the lookout for the news that will give you an edge in tomorrow’s markets.

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