Is it time investors turned bullish on Lend Lease Group?

Lend Lease Group (ASX:LLC) is looking interesting on both an absolute and relative valuation basis.

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Lend Lease Group (ASX: LLC) is not only one of Australia's leading property and infrastructure developer and manager but it also has a significant global presence.

The share price has fallen 15% in the past year and is currently trading less than 10% above its 52-week low. Significantly, the stock is down 26% from its 52-week high which could mean now is a good opportunity for investors to evaluate the stock more closely.

Here's why it could be time to turn bullish on the outlook for Lend Lease…

Appealing Growth Profile

Lend Lease provides investors with exposure to the key growth trends of urban regeneration and aging populations through world class assets such as Sydney's Darling Square and NorthConnex, London's The International Quarter and Rathbone Place, New York's 56 Leonard and Singapore's Paya Lebar Central. Lend Lease is also the largest owner and operator of retirement villages in Australia.

Appealing Metrics

With a development pipeline of $45 billion across residential apartments, residential communities and commercial property, a construction backlog of $17 billion and funds under management of $21 billion the group has a solid base on which to grow and to provide annuity style revenues.

Leveraged Across the Value Chain

Lend Lease has positioned itself to maximise value for shareholders by competing across the property and infrastructure lifecycle including via development returns, construction margins, investment management fees, asset management fees and co-investment returns.

The Bull Case

While a perfect comparison with Lend Lease is difficult, peers such as Stockland Corporation Ltd (ASX: SGP), Goodman Group (ASX: GMG), Mirvac Group (ASX: MGR) and Aveo Group (ASX: AOG) are all trading on higher 2017 forecast price-to-earnings ratios than Lend Lease's 11.2x –  which arguably makes the stock appealing on both a relative and an absolute basis.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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