Updates

** Shares of Lendlease Group LLC.AX rise as much as 1.6% to A$2.61, a day after hitting a four-decade low on Italy asset sale

** Citi sees "good value" for the integrated real estate business, says stock's pricing is too attractive to ignore

** Co on Monday agreed to sell its Milano Santa Giulia mixed-use development rights in Italy for around A$250 million ($179.05 million)

** Co says sale will be at discount to book value, expects post-tax operating loss of around A$175 million

** Brokerage says LLC.AX's larger-than-anticipated loss for FY26 earnings affects the non-core capital release unit, while core business FY26 EPS guidance of 28-34 AU cents/share likely unimpacted

** Adds, stock is trading at a discount, about 25% lower than estimated value of Lendlease's core assets

** Citi retains stock rating 'buy', maintains PT at A$6.3

** Stock down 50.1% YTD, including the day's moves

($1 = 1.3963 Australian dollars)