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CBRE: EPS has bottomed

  • Writer: Abacus Research
    Abacus Research
  • Aug 1, 2024
  • 1 min read

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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