CWK - Cushman & Wakefield: Recovery Prospects Priced In

• Cushman & Wakefield remained on the path of recovery in 1Q 2021, with fee revenue back to where it was a year ago, while cost savings drove earnings growth.
• Its transactional service lines recovered at a much faster pace than expected, especially Leasing whose YoY fee revenue decline narrowed from -37% in 4Q 2020 to -14% in 1Q 2021.
• Market consensus' FY 2021 estimates could be too bullish, taking into account the potential negative impact of inflation on capital markets activity and lower COVID-19 cost savings.
• Cushman & Wakefield is valued by the market at consensus forward FY 2021 and FY 2022 normalized P/E multiples of 15.4 times and 13.1 times, respectively.

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