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On Thursday, Scotiabank reiterated its Sector Perform rating and Cdn$51.00 price target for Altus Group (AIF:CN) (OTC: ASGTF) shares, a professional services firm. The reaffirmation followed Scotiabank's attendance at the Altus Group's 2024 Connect event, which took place on September 17-18 in Boston. The event featured presentations, new product demonstrations, and opportunities to engage with the company's management, clients, and partners.
During the Connect event, Altus Group showcased its new ARGUS Intelligence Platform, designed to enhance clients' ability to make informed commercial real estate (CRE) investment decisions. Scotiabank acknowledged the potential for the platform to increase Altus Group's share of wallet over time.
Despite the promising developments, Scotiabank noted ongoing uncertainty regarding the timing of a rebound in CRE transaction activity. This view was reinforced by conversations with industry participants at the conference.
The analyst's perspective aligns with the caution expressed by Altus Group's management during their second-quarter earnings call on August 9, which suggested a cautiously optimistic outlook for a stronger selling environment in the second half of 2024 and into 2025 but anticipated a slower recovery for the current year compared to previous guidance.
Scotiabank also observed that new product releases announced at the Connect event are likely to have a more significant impact in 2025 rather than in the immediate future. As a result, the firm has chosen to maintain its Sector Perform rating for Altus Group until more definitive signs of a CRE market recovery become apparent.
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