Australia's Lifestyle Communities' fund raise to drive earnings growth, says Citi

Lifestyle Communities

29/02/2024 02:58

** Analysts at Citi believe Lifestyle Communities'  LIC.AX 
recent A$275 million ($178.94 million) fund raise could drive
earnings growth in the medium term 
    ** The Australian real estate developer announced an
entitlement offer to raise up to A$275 million on Feb 22 to fund
land acquisition and development capital expenditures 
    ** Brokerage says that co has potential for medium-term
earnings growth, driven by rollout of an expanded development
pipeline
    ** The broker says the capital raise will relieve building
pressure on co's balance sheet 
    ** "We estimate that the earnings impact of raising will be
broadly neutral to slightly earnings accretive," Citi analysts
say 
    ** Citi maintains its "buy" rating on the stock, but slashes
price target to A$20 per share from A$20.78, implying a 25.1%
downside from stock's previous closing price 
    ** Stock has fallen ~17.1% this year, as of last close


($1 = 1.5368 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))