Lendlease Agrees to Sell Engineering Division, but Keeps the Riskiest Parts: FVE Unchanged.

Narrow-moat Lendlease’s announced sale of its engineering business does not fully insulate the company from project risk, as we had initially anticipated. Nonetheless, we make no change to our AUD 15.60 fair value estimate, as we already incorporated substantial uncertainty, and assumed that little value would accrue to Lendlease from the sale. Despite a negative reaction in the stock’s price, shares continue to look expensive.