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Investing.com - Evercore ISI has raised its price target on CBRE Group (NYSE:CBRE) to $147.00 from $143.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, CBRE is currently trading near its 52-week high of $147.75, with analysts’ targets ranging from $114 to $175.
The firm cited an updated DCF framework with a revised beta calculation as the reason for the higher target, despite making modest reductions to its earnings estimates due to economic uncertainty.
Evercore ISI lowered its fiscal year 2025 core EPS estimate from $5.98 to $5.92, slightly below consensus, and reduced its fiscal year 2026 estimate by over 2.5% from $6.97 to $6.78, which is 3.5% below the Street’s expectation of $7.02.
The analyst noted that corporate uncertainty over tariffs is weighing on certain parts of CBRE’s business lines, with these modest headwinds potentially lingering into the second half of the year, particularly affecting leasing and sales within the company’s Advisory Services segment.
CBRE stock has risen 9.0% since the end of the first quarter, outperforming the REIT index which is down 0.1%, but underperforming the S&P 500 which has gained just over 12% during the same period.
In other recent news, CBRE Group has made significant financial moves, including entering new senior unsecured revolving credit agreements totaling $4.5 billion. This new agreement includes a five-year revolving credit facility of up to $3.5 billion and a 364-day revolving credit agreement for up to $1 billion. Additionally, CBRE Group completed the redemption of $600 million in senior notes due in 2026, demonstrating proactive debt management. The company also issued $1.1 billion in senior notes, consisting of $600 million due in 2030 and $500 million due in 2035. The proceeds from these notes are intended to redeem existing notes, repay borrowings, and cover other corporate purposes. The issuance was managed by major financial firms, including Wells Fargo (NYSE:WFC) Securities and BofA Securities. These financial strategies reflect CBRE Group’s commitment to maintaining a robust balance sheet and financial flexibility.
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