Canaccord Genuity Maintains a 'Buy' on Jones Lang LaSalle (JLL); Reducing Estimates on Slower Real Estate Market Growth
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Price: $384.30 -1.51%
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Canaccord Genuity maintains a 'Buy' on Jones Lang LaSalle (NYSE: JLL) price target cut from $100 to $80.
Canaccord analyst, Eric Prouty, said, "We conclude a slowdown in real estate market growth, particularly in the US and Europe, will act as a headwind for JLL for the remainder of 2011 and in 2012. While the company should align its operating expense levels to better reflect weaker market activity, there may be a one to two quarter lag for this to take effect, in our view. In addition to lowering our 2011 and 2012 EPS estimates, we adjust our price target to $80. We maintain our BUY rating as we anticipate that JLL’s expertise in providing green building/sustainability solutions and the trend toward real estate outsourcing will drive long-term market share gains."
"Our 2011 and 2012 revenue reductions mainly reflect lower y/y growth expectations in the Americas and EMEA regions. Specifically for 2011, we now estimate 8.5% y/y revenue growth in the Americas (vs. 15.4% previously) and 15.4% y/y in EMEA (vs. 32.6% previously). For 2012, we now estimate 4.3% y/y growth in the Americas and 20.7% y/y growth in EMEA. (We note that projected 2012 EMEA growth reflects the recent acquisition of King Sturge.) We continue to have a positive outlook for the Asia Pacific region, estimating 2011 and 2012 y/y revenue growth of 30% and 13%, respectively."
For more ratings news on Jones Lang LaSalle click here and for the rating history of Jones Lang LaSalle click here.
Shares of Jones Lang LaSalle closed at $55.24 yesterday.
Canaccord analyst, Eric Prouty, said, "We conclude a slowdown in real estate market growth, particularly in the US and Europe, will act as a headwind for JLL for the remainder of 2011 and in 2012. While the company should align its operating expense levels to better reflect weaker market activity, there may be a one to two quarter lag for this to take effect, in our view. In addition to lowering our 2011 and 2012 EPS estimates, we adjust our price target to $80. We maintain our BUY rating as we anticipate that JLL’s expertise in providing green building/sustainability solutions and the trend toward real estate outsourcing will drive long-term market share gains."
"Our 2011 and 2012 revenue reductions mainly reflect lower y/y growth expectations in the Americas and EMEA regions. Specifically for 2011, we now estimate 8.5% y/y revenue growth in the Americas (vs. 15.4% previously) and 15.4% y/y in EMEA (vs. 32.6% previously). For 2012, we now estimate 4.3% y/y growth in the Americas and 20.7% y/y growth in EMEA. (We note that projected 2012 EMEA growth reflects the recent acquisition of King Sturge.) We continue to have a positive outlook for the Asia Pacific region, estimating 2011 and 2012 y/y revenue growth of 30% and 13%, respectively."
For more ratings news on Jones Lang LaSalle click here and for the rating history of Jones Lang LaSalle click here.
Shares of Jones Lang LaSalle closed at $55.24 yesterday.
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