Can the Lifestyle Communities share price recover in FY23?

The Lifestyle Communities Limited (ASX: LIC) share price is rangebound today.

At the time of writing, the share is trading 0.5% higher at $14.19 apiece on no news.

The real estate company is having a tough time in 2022, with its share price down 32% year to date.

To compare, the S&P/ASX 200 Real Estate Index (ASX: XRE) is 1.2% lower today and down 23% year to date.

Are Lifestyle Communities shares now drifting higher?

It was a flat year on the ASX charts for Lifestyle Communities in FY22, right up until market volatility crept in on 29 December 2021.

That confirmed a longer-term downtrend that remained in situ until the shares found a bottom at $11.63 on 17 June.

Since then, Lifestyle Communities has drifted marginally higher, and then sideways over the past two to three weeks.

Turning to FY23 and the outlook could be bright for the Lifestyle Communities share price, according to a research note from Goldman Sachs.

The Goldman team rates Lifestyle Communities a buy and values its shares at a price of $24.65.

Macroeconomic analysts at the investment bank reckon there could be a 10% drawdown in house prices in coming periods.

However, Lifestyle Communities offsets this risk with its annuity-style rental income, Goldman says.

Meanwhile, the share has a buy rating from 80% of the analysts covering it, according to Refinitiv Eikon data.

UBS analysts led by Tom Bodor were neutral on Lifestyle Communities back in March.

The 12-month consensus price target from this list is $17.30, suggesting brokers think there’s some upside yet to be priced in during FY23.

In the past 12 months, the Lifestyle Communities share price is down 5.5%.

The post Can the Lifestyle Communities share price recover in FY23? appeared first on The Motley Fool Australia.

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More reading

• Why analysts say investors should buy these top ASX shares
• The Lifestyle Communities share price is down 50% in 8 months – time to buy?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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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