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:
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.
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.
For Money Morning