Based in Dallas, Texas, CBRE Group, Inc. (CBRE) is a global provider of commercial real estate services and investment solutions. Valued at a market cap of $33.1 billion, the company operates internationally, offering a wide range of services to tenants, owners, and investors.
Shares of CBRE Group have outperformed the broader market over the past 52 weeks. CBRE has gained 27.6% over this time frame, while the broader S&P 500 Index ($SPX) has soared 19.7%. In 2024, CBRE stock is up 15.9%, compared to SPX's 12.1% gains on a YTD basis.
Zooming in further, CBRE also outpaced the S&P 500 Real Estate Sector SPDR's (XLRE) 11.2% returns over the past 52 weeks and a 3.7% YTD increase.
CBRE has outperformed due to its robust scale, strategic in-fill acquisitions, and a diversified, resilient business model that capitalizes on growing outsourcing trends and a solid Global Workplace Solutions segment. Moreover, the stock surged 9.3% on Jul. 25 following strong Q2 earnings results, including increased revenue and profitability, and an upgraded full-year EPS forecast. The positive market reaction was also driven by the successful integration of Turner & Townsend and a confident long-term growth outlook.
For the current fiscal year, ending in December, analysts expect CBRE’s EPS to grow 26% year over year to $4.84. The company’s earnings surprise history is promising. It beat the consensus estimate in each of the last four quarters.
Among the nine analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buys” and five “Holds.”
This configuration is slightly more bullish than three months before, with three analysts suggesting a "Strong Buy."
On Jul. 30, KBW analyst Jade Rahmani issued a "Hold" rating for CBRE Group and set a price target of $120. This new target implies a potential upside of 11.2% from current levels.
The mean price target of $114 represents a premium of only 5.7% to CBRE's current levels. The Street-high price target of $129 implies a potential upside of 19.6% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
