** Morningstar downgrades fair value estimate for Lifestyle Communities LIC.AX by 28% to A$6 per share, increases 'Uncertainty Rating' to Very High from Medium
** Associates downgrade on probability of LIC losing its appeal with regard to a court slashing the exit fee co charges and fewer new home sales in FY2026 and 2027
** Expects co to pause dividends while uncertainty persists and forecast dividends suspension in FY2026
** Sees a weak FY26, with new home sales to be about 5% less than FY25
** Says reputational damage may persist for longer with customers being reluctant to buy LIC homes while the matter is before the courts
** Expects recovery in sales volumes over FY27, in case co wins the appeal
** 4 out of 8 analysts rate the stock 'buy' or higher, 3 rate it 'hold' while 1 rates it sell; median price target is A$8.45 - data compiled by LSEG
** YTD, LIC down 48.4% as of last close
(Reporting by Jasmeen Ara Shaikh in Bengaluru)
((JasmeenAraIslam.Shaikh@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.