10:25 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target by $10 to $86, applying a forward P/E of 20.0x our 2024 EPS estimate, a premium to CBRE's ( CBRE ) 10-year average multiple of 16.5x as we see improvement in CRE transaction activity in 2H 2024, likely accelerating into 2025. We lower our 2024 EPS estimate by $0.16 to $4.29 and keep 2025 at $5.51. CBRE ( CBRE ) posted Q1 2024 EPS of $0.78 vs. $0.92, a $0.10 consensus beat. Revenues rose 7% Y/Y, led by Global Workplace Solutions (GWS; +9% Y/Y, 73% of revenue), Advisory Services (+3% Y/Y, 24%), and Real Estate Investments (REI; +2% Y/Y, 3%). While year-over-year results have shown improvement, we note that market activity remained weak in Q1 and higher-for-longer rates will likely delay the expected market recovery. Core EBITDA dropped 20% Y/Y as EBITDA margins dropped to 5.3% vs. 7.2% Y/Y, lower than expected. With $3.9 billion of liquidity and net leverage of 1.5x available, we believe CBRE ( CBRE ) will continue looking at potential M&A opportunities, following the acquisition of J&J Maintenance for $1.1B in Q1.