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On Thursday, Evercore ISI increased its price target for CBRE Group (NYSE:CBRE) shares to $143.00, up from the previous target of $137.00, while maintaining an Outperform rating. The adjustment follows CBRE’s first-quarter earnings, which Evercore ISI analyst Steve Sakawa cited as better than expected, though he acknowledged the less certain economic outlook ahead. According to InvestingPro data, CBRE’s stock has shown strong momentum with a 40% return over the past year, and analysts maintain a bullish consensus with price targets ranging from $112 to $163.
Sakawa noted that CBRE has prudently decided to maintain its financial projections for the fiscal year 2025, with core earnings per share (EPS) expected to remain between $5.80 and $6.10. Following an update to their financial model, Evercore ISI has increased its forecast for CBRE’s 2025 core EPS from $5.90 to $5.98, a figure that does not fully reflect the first-quarter outperformance. The estimate for 2026 remains effectively unchanged at $6.97, slightly down from the previous $7.00 prediction. InvestingPro analysis shows the company’s revenue growing at nearly 12% over the last twelve months, with net income expected to grow further this year.
The analyst emphasized the strength of CBRE’s balance sheet, which he described as a "fortress," and the resilience of its business lines despite market uncertainties. This financial stability is expected to support the company’s ability to grow its EPS in the mid to high teens during the challenging economic climate. InvestingPro data confirms this assessment, showing CBRE operates with a moderate debt-to-equity ratio of 0.7 and maintains a healthy current ratio of 1.07. For deeper insights into CBRE’s financial health and detailed metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
CBRE Group has not altered its fiscal metrics for the year 2025, a move that Evercore ISI views as a cautious yet sensible approach considering the current economic uncertainty. The real estate services firm’s consistent financial outlook, combined with the slight increase in the price target from Evercore ISI, reflects a degree of confidence in the company’s performance and strategic management in the face of potential economic headwinds.
In other recent news, CBRE Group Inc. reported strong financial results for the first quarter of 2025, exceeding both earnings and revenue forecasts. The company posted an earnings per share (EPS) of $0.86, surpassing the consensus estimate of $0.82, while revenue reached $8.91 billion, higher than the expected $8.73 billion. This performance highlights CBRE’s operational efficiency, with a 27% increase in core EBITDA and a 10% rise in core EPS year-on-year. William Blair analyst Stephen Sheldon reaffirmed an Outperform rating on CBRE Group, noting the company’s promising performance amid challenging conditions and potential for robust multiyear growth. Sheldon’s analysis suggests that CBRE’s diverse business strategy could lead to upward estimate revisions and potential benefits from mergers and acquisitions. CBRE’s strategy of diversifying its business has resulted in more resilient segments, which now account for 60% of profit and continue to grow at a double-digit rate. Despite potential risks associated with macroeconomic trends and foreign currency fluctuations, CBRE maintains its core EPS guidance for 2025 between $5.8 and $6.1. The company’s strong balance sheet and strategic focus on mergers and acquisitions position it well for future growth.
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