CIGI - Colliers nabs Outperform rate at RBC citing 'compounding-like qualities'
2023-05-31 11:03:24 ET
RBC Capital Markets analyst Jimmy Shan started coverage of Colliers International Group ( NASDAQ: CIGI ) with an Outperform rating on Wednesday, citing the real-estate services company's "compounding-like qualities" in terms of attractive rate of return on invested capital.
"Weakness in the CRE brokerage business is clouding its long-term compounding potential," but it presents "an opportunity for long-term minded investors," Shan wrote in a note, viewing the lull in commercial real estate as cyclical rather than structural.
He pointed to Colliers' ( CIGI ) other businesses that should offset weakness in its Capital Markets unit, chiefly "its highly profitable & scalable Investment Management business, which we believe is underappreciated by the market, and Outsourcing & Advisory (totaling ~68% of ‘23E Adj. EBITDA) along with acquisitions."
The Outperform rate aligns with the average Wall Street analyst rating of Buy (3 Strong Buy, 5 Buy, 1 Hold).
More on Colliers International Group
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Colliers nabs Outperform rate at RBC, citing 'compounding-like qualities'