We like the commercial real estate brokers as a way to play expected normalizing in the CRE market aided by falling rates
Q2’24 was the confirmation that the bottom is in.
After two years of earnings declines, Q2’24 was the first quarter when earnings were flat yoy and CBRE beat in all segments
60% of Profit comes from a relatively high-quality compounding service business, which differentiates it from peers JLL and CWK
We find M&A and capital deployment an attractive part of CBRE giving compounding returns and estimate an 18-20% EPS CAGR over the next 4 years.
Potential Upside: $145 (+29%)
Sensible Downside: $90 (-20%)
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