U.S. stocks edge higher; solid earnings season continues
Investing.com - Evercore ISI has reiterated an Outperform rating and $147.00 price target on CBRE Group (NYSE:CBRE) stock ahead of the company’s second-quarter earnings report. The real estate services giant, currently valued at $41 billion, trades near its 52-week high of $147.75 after delivering an impressive 55% return over the past year. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
CBRE is scheduled to release its Q2 results on Tuesday, July 29, before the market opens. While Evercore maintained its Q2 forecasts, the firm has modestly lowered its leasing and sales assumptions for the second half of 2025, citing tougher comparisons and elevated macroeconomic uncertainty. InvestingPro data shows the company has maintained solid revenue growth of 13.15% over the last twelve months, with analysts expecting continued profitability this year. For deeper insights into CBRE’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The research firm highlighted concerns about tariff deals remaining in limbo and the Federal Reserve’s limited ability to implement rate cuts in the near term. Evercore’s analysis of CoStar quarterly sales data across office, industrial, residential, and retail sectors indicates a noticeable slowdown in activity when comparing year-over-year growth rates for Q2 2025 versus Q1 2025.
Evercore noted a strong correlation between CoStar’s industry data and CBRE’s advisory sales revenue, based on historical patterns dating back to Q1 2016. This correlation suggests CoStar data could serve as a directional indicator for CBRE’s quarterly sales growth, though it doesn’t account for potential market share fluctuations.
The firm’s analysis shows that industry transaction volumes have generally slowed compared to most of 2024, which factored into Evercore’s more conservative outlook for CBRE’s second-half performance.
In other recent news, CBRE Group announced the completion of a $600 million senior notes redemption, effectively discharging its obligations under these notes. This move is part of CBRE’s broader financial strategy to manage its debt portfolio actively. Additionally, CBRE has issued $1.1 billion in new senior notes through its subsidiary, CBRE Services, Inc., which includes $600 million due in 2030 and $500 million due in 2035. The proceeds from these notes are intended for redeeming existing senior notes due in 2026, repaying borrowings, and other corporate purposes.
CBRE Group has also entered into new credit agreements amounting to $4.5 billion, replacing a previous facility. The new agreements include a five-year revolving credit agreement and a 364-day revolving credit agreement, with interest rates based on the company’s credit ratings. In analyst news, Evercore ISI raised its price target for CBRE Group to $147 from $143 while maintaining an Outperform rating. Despite this, the firm made modest reductions to its earnings estimates due to economic uncertainty. These developments reflect CBRE’s ongoing efforts to maintain financial flexibility and manage its debt efficiently.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.