Is it time to take a contrarian view on this ASX 200 real estate giant?

Could this share be worth looking at?

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Key points

  • This ASX 200 real estate stock has fallen 28% in a year 
  • The share may be one for a contrarian investor to take a look at 
  • The company's share price has risen nearly 5% in the last month 

Shares in ASX 200 real estate share Lendlease Group (ASX: LLC) have tumbled lower in the last year. But could now be the time to invest in them?

Lendlease shares have descended nearly 28% in the last year. However, the company's share price has climbed nearly 5% in the past month. In contrast, the S&P/ASX 200 Index (ASX: XJO) has slid nearly 3% in a month.

Let's take a look at what's going on at Lendlease Group.

What's ahead?

A contrarian investor is someone who looks beyond popular market trends and tends to take an unpopular view on a share.

If the market is bearish they are more likely to buy up the share. However, if the market is bullish, they may be bearish on the share.

ASX 200 real estate giant Lendlease is an international property and construction company with global operations.

As my Foolish colleague Mitch reported, Lendlease is a share Allan Gray Australia holds a contrarian view on in the future.

The ASX 200 real estate share makes up 3% of the weighting in the Allan Gray Australia Equity Fund. The team believes Lendlease could be valuable if it makes progress on its construction, investment and development targets.

Allan Gray chief investment officer Simon Mawhinney believes if Lendlease can achieve its own targets, it could be trading at eight to 10 times its earnings.

Commenting on Lendlease, he said:

Some areas inside Lendlease's portfolio which are sort of latent areas of value which we think are going to contribute quite meaningfully in the future.

Lendlease share price snapshot

The Lendlease share price has declined 0.64% in the year to date.

This ASX 200 share has a market cap of nearly $5.4 billion based on the latest share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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