CBRE Group (CBRE) is well positioned to benefit from artificial intelligence over time, given its "strong industry position" and extensive real estate data assets, UBS Securities said in a report emailed Monday.
CBRE has been pressured by AI-related concerns, but strong commercial real estate trends and company guidance projecting 14% to 19% growth in fiscal-year 2026 indicate the company is better positioned than the market assumes, leaving potential upside in the stock, the report said.
The firm also pointed to management commentary highlighting a "massive opportunity" to serve owners and operators of data centers and digital infrastructure, as well as the potential to leverage AI to enhance its data-driven capabilities, according to the report.
Analysts at UBS raised fiscal 2026 earnings per share estimates by 5% to $7.55, near the high end of company guidance, driven by "better-than-expected" brokerage trends and the impact of the "Pearce acquisition." Fiscal 2027 EPS was increased 7% to $8.75. Revenue is now projected to grow 9% in fiscal 2027, with EPS rising 16%, the report said.
UBS has upgraded the commercial real estate services and investment firm to buy from neutral and raised its price target to $185 from $175.
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