Barclays Maintains an 'Overweight' on CB Richard Ellis Group (CBG); Solid Quarter; ING REIM Acquisition Closed
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Price: $47.31 -0.23%
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on CB Richard Ellis Group (NYSE: CBG) price target of $20.00.
Barclays analyst says, "CBG again beat our revenue projection but missed our EBITDA margin assumption and as a result, third-quarter AEPS was slightly below our estimate and in line with consensus. Notwithstanding the AEPS miss, the revenue trend is encouraging, particularly given heightened investor concerns over the past few months regarding leasing and investment sales volumes, and margins appear poised to improve. Similar to last quarter, the 3Q11 EBITDA margin was negatively impacted by a few essentially non-recurring items. We expect these drags to dissipate and look for a boost from the newly-acquired ING REIM businesses; the securities business closed on 7/1/11 and the Asia and Europe businesses closed in October. This should increase revenues and margins, as well as earnings stability. We project 24% YOY AEPS growth in 2012 and 15% average annual growth from 2011-2016. We are maintaining our $20 price target, which implies a 15% return, and our rating on the shares. Our constructive view largely stems from our sense that the transaction businesses may moderate but remains relatively healthy."
For more ratings news on CB Richard Ellis Group click here and for the rating history of CB Richard Ellis Group click here.
Shares of CB Richard Ellis Group closed at $17.46 yesterday.
Barclays analyst says, "CBG again beat our revenue projection but missed our EBITDA margin assumption and as a result, third-quarter AEPS was slightly below our estimate and in line with consensus. Notwithstanding the AEPS miss, the revenue trend is encouraging, particularly given heightened investor concerns over the past few months regarding leasing and investment sales volumes, and margins appear poised to improve. Similar to last quarter, the 3Q11 EBITDA margin was negatively impacted by a few essentially non-recurring items. We expect these drags to dissipate and look for a boost from the newly-acquired ING REIM businesses; the securities business closed on 7/1/11 and the Asia and Europe businesses closed in October. This should increase revenues and margins, as well as earnings stability. We project 24% YOY AEPS growth in 2012 and 15% average annual growth from 2011-2016. We are maintaining our $20 price target, which implies a 15% return, and our rating on the shares. Our constructive view largely stems from our sense that the transaction businesses may moderate but remains relatively healthy."
For more ratings news on CB Richard Ellis Group click here and for the rating history of CB Richard Ellis Group click here.
Shares of CB Richard Ellis Group closed at $17.46 yesterday.
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