On Aug 22, we reaffirmed our long-term Neutral recommendation
CBRE Group Inc.
). The decision is based on improving global capital markets and
occupier outsourcing businesses and the company's incremental
investments in its operating platform to capitalize on growing
opportunities. However, the soft market conditions in the leasing
business due to increased occupier concerns and weakness in
economic activity remain headwinds.
Why the Reiteration?
Due to the weak yen and soft market conditions, CBRE's earnings
per share came in at 31 cents per share, missing the Zacks
Consensus Estimate by 3 cents. However, this was 15% higher year
over year, attributable to improvements in the global capital
markets and occupier outsourcing businesses.
CBRE has a broad range of real estate products and services, and
an extensive knowledge of domestic and international real estate
markets that enable it to operate as a single-source provider of
real estate solutions. The company has a promising outsourcing
business, backed by an increasing clientele.
Moreover, with ample availability of low-cost credit, property
sales activities have increased as investors are looking for
decent yield and this has helped the company experience
significant growth in global property sales revenues. The company
has also reaffirmed its full-year 2013 adjusted earnings per
Yet, stiff competition from regional as well as international
players remains a concern and an extensive development pipeline
increases its operational risks. Therefore, our Neutral
recommendation on the stock remains in place.
Over the last 30 days, the Zacks Consensus Estimate for 2013
remained unchanged at $1.44 per share while the Zacks Consensus
Estimate for 2014 inched up 1.2% to $1.70 per share. The stock
currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks worth considering in the related industry that are
worth considering include
) that has a Zacks Rank #1 (Strong Buy) as well as
Standard Parking Corporation
), both carrying a Zacks Rank #2 (Buy).
CBRE GROUP INC (CBG): Free Stock Analysis
FIRSTSERVICE CP (FSRV): Free Stock Analysis
HFF INC-A (HF): Free Stock Analysis Report
STANDARD PKG CP (STAN): Free Stock Analysis
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