The Lendlease Group (ASX: LLC) share price is out of form again on Tuesday.
In early afternoon trade, the global property company's shares are down 2% to $11.40.
This means the Lendlease share price is now down almost 10% since the release of its full year results.
Is the Lendlease share price weakness a buying opportunity?
One leading broker that appears to see the weakness in the Lendlease share price as a buying opportunity is Citi.
According to a note out of the investment bank this morning, its analysts have retained their buy rating but trimmed their price target to $14.27.
Based on the latest Lendlease share price, this price target implies potential upside of 25% over the next 12 months before dividends.
And with Citi forecasting an 18.3 cents per share dividend in FY 2022, the potential total return stretches to just under 27%.
What did Citi say?
While Citi notes that Lendlease delivered a result a touch short of expectations and its outlook is challenged, it was pleased with the greater earnings visibility.
Citi commented: "FY21 core PAT of $377m was at the lower end of the guided range and 1% below consensus. Management provided FY22 segment return guidance, which helps enhance LLC's earnings visibility, but development ROIC should be lower than expected."
"Changes to development profit recognition will weigh on near-term earnings but could improve the market's assessment of LLC's earnings quality. Our revisions primarily reflect lower near-term development earnings, given both lower activity and later recognition. Our TP declines to $14.27 on lower DCF/SOTP. We retain our Buy rating."
Following this week's decline, the Lendlease share price is now down almost 15% since the start of the year. While this is disappointing, when the dust settles on this result, Citi appears to believe its shares could be heading higher.
