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On Wednesday, Jefferies analyst Peter Abramowitz adjusted the price target on Jones Lang LaSalle (NYSE:JLL) stock, reducing it slightly to $264 from $266, while continuing to endorse the stock with a Buy rating. The revision follows Jones Lang LaSalle’s demonstration of robust performance in the first quarter, particularly in Office and Industrial leasing, along with a strong showing from Capital Markets, despite a backdrop of macroeconomic uncertainty. With a market capitalization of $10.5 billion and revenue growth of ~14% in the last twelve months, InvestingPro analysis suggests the stock is currently trading below its Fair Value, supported by attractive valuation metrics including a P/E ratio of 19.6x.
Abramowitz’s assessment acknowledges the healthy pipelines seen as the company heads into the second quarter, with capital allocators remaining active. However, he notes that the recent uptick in interest rates could start to impact transaction activities. Despite this potential headwind, he suggests that the resilience in the company’s results could potentially improve investor sentiment towards the stock, which is currently trading 22% below its recent peak values. InvestingPro data reveals multiple positive indicators, including strong return metrics and attractive valuation multiples. Subscribers can access 12 additional ProTips and comprehensive financial analysis through the Pro Research Report.
The analyst’s commentary highlights the sector’s solid performance amidst challenges, stating, "Office and Industrial leasing led the way, with Capital Markets also showing solid performance in 1Q despite a more uncertain macro backdrop." Abramowitz remains optimistic about the company’s prospects, adding, "Looking ahead to 2Q, pipelines remain healthy as capital allocators continue to engage." The company’s financial health score from InvestingPro is rated as "GOOD," with particularly strong profitability metrics and a solid Altman Z-Score of 3.91, indicating financial stability.
The slight decrease in the price target reflects cautious optimism, as the analyst balances the current economic factors with the company’s strong first-quarter outcomes. Abramowitz concludes with a positive outlook, "That said, with the stock still -22% below recent highs, resilient results could cause sentiment to turn. Maintain Buy."
Investors and market watchers will be keeping an eye on Jones Lang LaSalle’s stock performance in the coming months, particularly in relation to interest rate movements and their impact on the real estate market. With the maintained Buy rating, Jefferies signals confidence in the company’s ability to navigate the current economic landscape.
In other recent news, Jones Lang LaSalle reported a strong start to 2025, with earnings per share (EPS) of $2.31, surpassing the forecast of $2.16. However, the company’s revenue slightly missed expectations, coming in at $5.7 billion against a forecast of $5.73 billion. Citi analysts recently adjusted their financial model for Jones Lang LaSalle, lowering the price target from $275 to $240 while maintaining a Neutral rating on the stock. This revision reflects updated operating, financing, and transaction assumptions, with EPS estimates for fiscal years 2025 and 2026 set at $16.57 and $19.81, respectively.
Shareholders of Jones Lang LaSalle approved several key proposals during the Annual Meeting, including the election of directors and executive compensation plans. The appointment of KPMG LLP as the independent accounting firm for 2025 was also ratified. In addition, Catherine Clay was appointed as an independent, non-executive member of the Board of Directors, bringing expertise in derivatives markets and financial technology. These developments indicate continued strategic adjustments and governance decisions aimed at strengthening the company’s market position.
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