Keefe, Bruyette & Woods maintains CBRE stock at Market Perform

Published 25/03/2025, 13:24
Keefe, Bruyette & Woods maintains CBRE stock at Market Perform

On Tuesday, Keefe, Bruyette & Woods reaffirmed their Market Perform rating on shares of CBRE Group (NYSE:CBRE), along with a steady price target of $145.00. The decision follows CBRE Group’s recent disclosure of historical financials restructured according to its new business segmentation.

Jade Rahmani of Keefe, Bruyette & Woods updated the firm’s financial model to reflect CBRE Group’s revised segment reporting. Despite the new segmentation, the firm has chosen not to alter its earnings estimates for CBRE. Rahmani’s report highlights the composition of CBRE’s business, which now includes four distinct segments.

These segments are Advisory Services, which encompasses leasing, capital markets, and valuation services; Building Operations & Experience, focusing on facilities and property management; Project Management, which includes contributions from Turner & Townsend; and Real Estate Investments, covering investment management and development, with a significant role played by Trammell Crow.

The updated model by Keefe, Bruyette & Woods takes into account the realigned structure of CBRE Group, aiming to provide a clearer picture of the company’s diverse operations and revenue streams. The Market Perform rating indicates that the firm anticipates CBRE’s stock performance to be in line with the average returns of the stocks covered by the analysts.

CBRE Group’s stock price target of $145.00 remains unchanged post the analysis of the new segmentation. This price target is a reflection of Keefe, Bruyette & Woods’ expectation of where the stock will trade in the near future, based on the updated financial model and current market conditions.

In other recent news, CBRE Group reported strong financial results for the fourth quarter of 2024, surpassing analysts’ expectations with an earnings per share (EPS) of $2.32, compared to the forecasted $2.22. The company also exceeded revenue projections, reporting $10.4 billion against the anticipated $10.24 billion. Additionally, CBRE Group has restructured into four business segments: Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments. This restructuring follows strategic moves, including the acquisition of Industrious and the integration of Turner & Townsend. CBRE Group also secured an additional $750 million in credit, enhancing its financial flexibility. In another development, Keefe, Bruyette & Woods raised the price target for CBRE Group shares to $145.00, maintaining a Market Perform rating. The company has also revised executive compensation and amended its bylaws, removing director term limits. These recent developments reflect CBRE Group’s ongoing efforts to adapt to market changes and enhance its growth strategy.

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