CWK - Cushman & Wakefield cut to Neutral at Goldman Sachs on slowing topline high leverage

2023-04-10 12:05:45 ET

• Cushman & Wakefield ( NYSE: CWK ) was downgraded to Neutral at Goldman Sachs from Buy due to slowing topline, elevated leverage and interest expenses, and low free cash flow conversion.
• The research firm also reduced its price target on Cushman ( CWK ) to $11 from $15.5, implying 11.7% potential upside to its last close.
• Goldman Sachs analyst Chandni Luthra said the commercial real estate sector is facing a more challenging backdrop amid a tightening lending environment, higher interest rates, and falling CRE transaction and lending volumes.
• Luthra is bullish on CBRE ( CBRE ) and Colliers International ( CIGI ) on account of their quality, scale and capital allocation.
• She maintained Sell ratings on Newmark ( NMRK ) and Jones Lang LaSalle ( JLL ) given their bigger focus on the office asset class.
• Shares of Newmark ( NMRK ) -7.2% , Colliers ( CIGI ) -5.5% , Cushman ( CWK ) -4.6% , Jones Lang LaSalle ( JLL ) -2.5% , CBRE ( CBRE ) -1.6% .
• Goldman Sachs' stance on Cushman ( CWK ) contrasts largely bullish sell-side ratings , but is in line with SA Quant's Hold rating .

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