Deutsche Bank raises Savills stock price target on expected real estate recovery

Published 18/09/2025, 16:20
Deutsche Bank raises Savills stock price target on expected real estate recovery

Investing.com - Deutsche Bank raised its price target on Savills Plc (LON:SVS) to GBP13.43 from GBP13.19 while maintaining a Buy rating on Thursday.

The global real estate services provider has grown revenue by 12% between fiscal years 2021 and 2024, despite global commercial real estate transactions declining by half during the same period. This growth reflects market share gains, new business lines, and expansion in Property Management and Consultancy services.

Lower transaction volumes and changing business mix have impacted Savills’ profitability, with margins falling 42% and profit before tax declining 35% over the three-year period. The company’s transaction-related profit segments have been particularly affected by market conditions.

Deutsche Bank noted that early signs of recovery appeared in Q4 2024, before tariff and geopolitical uncertainties caused a pause in activity during Q2 2025, especially in Savills’ key Central and Eastern European, Middle Eastern, and Asia-Pacific markets.

The firm believes this slowdown is temporary, pointing to Savills’ record pipeline of future work as positioning the company for a "material increase in profits" when real estate volumes improve, contrasting with the stock’s current price which sits 35% below its highs and down 20% year-over-year.

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