CBRE Is This Analyst's Top Pick Betting On Commercial Real Estate Recovery, Upgrades Stock

Nabaparna Bhattacharya

January 15, 2025

Morgan Stanley analyst Ronald Kamdem upgraded CBRE Group Inc (NYSE:CBRE) to Overweight from Equal-Weight, raising the price forecast to $160 from $115.

The analyst writes the company is well-positioned for double-digit earnings growth due to its market-leading position in both stable, recurring business lines like mortgage servicing, property management, and valuation, which make up about 60% of expected 2025 EBITDA, and higher-margin cyclical business lines like leasing, capital markets, and development, accounting for about 40%.

The analyst raised the 2025 transaction volume forecast to $450 billion, up 13% year-over-year. Despite a drop from the peak of $700 billion in 2021-2022, the analyst sees room for further margin expansion and operating leverage.

Read also: JPMorgan Chase Q4 Earnings: Investment Banking Revenue Jumps 46%, CEO Jamie Dimon Says ';Inflation May Persist For Some Time'

Kamdem projects the company generate $1.1 billion in free cash flow (FCF) in 2025 and $1.3 billion in 2026, with a solid FCF conversion rate of around 60%.

Kamdem writes investors are focused on how the company will allocate its excess cash, and CBRE plans to use this for strategic acquisitions and share repurchases.

Recent acquisitions like Direct Line Global and J&J Worldwide Services are aimed at expanding capabilities, according to the analyst.

In addition to a strong FCF outlook, CBRE has authorized $5 billion for share repurchases, adding to the existing $4 billion.

Based on these factors, the analyst raised the price target, reflecting expectations for higher growth driven by a commercial real estate recovery and a potential total return of 29%.

The analyst also notes signs of improvement and increased confidence that a commercial real estate transaction recovery will occur in 2025.

Price Action: CBRE shares are trading higher by 5% to $131.06 at last check Wednesday.

Read also:

Citigroup Q4 Earnings: 12% Topline Growth, $2.9 Billion Net Income, $20 Billion Share Buyback, Gains In Wealth And Market Segments

Image via Shutterstock.

Recommended

The Repeatable Strategy Behind 20+ Early Memecoin Wins (Revealed) - Ad

D.C.'s Quiet Plan for a New Tech Era - Ad

They've Done It 20+ Times-Now They've Found a New Memecoin to Watch - Ad

Congresswoman Marjorie Taylor Greene disclosed some new stocks recently. Unlike past trades in 2024 and 2025, the latest disclosure is rather unique.

Jim Cramer's '10 Stocks To Own For The Future' In 2000 Cost This Redditor A Decade Of Retirement, Says Having To Work 10 More Years Was 'Painful'

A Reddit user slammed Jim Cramer's stock picks at the peak of the Dot-Com bubble, saying that the CNBC host's suggestions cost him a decade of retirement.

The Smart Money Copper Trade

The Smart Money Copper Trade - Ad

Quebec discovery. Strong grades. Roads and hydro in place. Funding secured for a busy drill calendar. Each assay can build scale and tighten the window for early entries as EVs and data centers pull harder on copper. Do not wait.

Joan Branson, wife of British billionaire Richard Branson, dies at 80

Joan Branson, the wife of British billionaire Richard Branson, has died at age 80.

Trump-Pardoned Ponzi Schemer Faces 37-Year Sentence For $44 Million COVID Scam

A previously convicted Ponzi schemer who had received a pardon from President Trump is heading back to prison due to involvement in a new fraudulent scheme.

Utility Over Hype: ETF Launch Alert

Utility Over Hype: ETF Launch Alert - Ad

This ETF isn't about speculation, it's about infrastructure. Seconds-level settlement, low fees, and institutional custody.

Trump commutes prison sentence for former private equity executive David Gentile

HALLANDALE BEACH, Fla. (AP) — President has commuted the prison sentence of former investment manager David Gentile, who was convicted of defrauding investors — the latest in a Trump has taken in .

Cathie Wood Bets Big On These Stocks As Bitcoin, Ethereum Crash —Dumps Instagram Rival

On Tuesday, Cathie Wood-led Ark Invest made significant trades, notably increasing its holdings in Bullish (NYSE:BLSH), Coinbase Glo

The Next ETF Era Begins with Payments

The Next ETF Era Begins with Payments - Ad

After Solana and Hedera, another digital-asset ETF has arrived and it targets global money movement.

New York advances casinos at a Bronx golf course and near Mets stadium

NEW YORK (AP) — Casinos proposed for a golf course in the Bronx and next to the New York Mets’ ballpark are poised to cash in on a for the New York City area.

Trump's $2,000 Tariff Dividend Stumbles On Math: Cost Far Exceeds Revenue

Trump's $2,000 tariff rebate plan faces a major math gap, with estimated costs up to $606.8B—far exceeding tariff revenues in 2025 and 2026, says the Tax Foundation.

The $43B Big Pharma Story is Starting Over-With a New Player

The $43B Big Pharma Story is Starting Over-With a New Player - Ad

Big Pharma once paid $43B for a small biotech with a similar platform. Now, a new company is following that same playbook, leveraging its patented delivery technology to attract partnerships and near-term revenue potential.

Donald Trump Nullifies 92% Of Joe Biden's Autopen-Signed Documents: 'Cancelling All Executive Orders And Anything Else'

Trump moved to invalidate what he claims are most of Biden's autopen-signed actions, sparking political backlash and renewed debate over the legality and precedent of using mechanical signatures for presidential documents.

Barrick's Breakup Rumors, North America Versus The World

Barrick Mining (NYSE: B) may split into two companies, one focused on North America and another on Africa and Asia.

The Next Biggest Bull Run In Over 50 Years

The Next Biggest Bull Run In Over 50 Years - Ad

Gold has hit all-time highs, breaking $4,000 an ounce - but history shows it could be on the verge of its biggest bull run in over half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you're likely expecting.) Now, a top analyst says you can capture ALL of the upside without touching a risky miner or a boring exchange-traded fund. He sees extraordinary potential gains long term with very little risk.

What to know about the apartment tower fire in Hong Kong

HONG KONG (AP) — Hong Kong firefighters were making a final push to try and find any survivors from the city's , going apartment-to-apartment in the high-rise complex in an exhaustive search.

Peter Schiff Says Bitcoin Buyers Have Only One (Unlikely) Hope To Bail Them Out

Bitcoin's (CRYPTO: BTC) slide through key support levels has brought long-time critic and gold advocate Peter Schiff back into the spotlight—and he's

Copper Is Tight, Silver Is Rising - And This Early Nevada Play Hits the Timing Perfectly

Copper Is Tight, Silver Is Rising - And This Early Nevada Play Hits the Timing Perfectly - Ad

AI, electrification, battery storage, and data centers are pushing copper and silver demand sharply higher, even as supply stays tight. This region in Nevada offers rare multi-metal potential, and a new company has secured land in a district the surging district. It's one of the cleanest timing setups in the sector right now.

Billionaire Cari Tuna on why the organization she started will offer free advice to other donors

For San Francisco-based Cari Tuna, the most important decision a philanthropist can make is deciding . Starting Tuesday, the organization she helped found will offer making those choices.

Weekend Round-Up: TSMC Trade Secrets Lawsuit, Google Deepmind Scientist's Market Slam, Baidu Layoffs, Amazon's Court Victory And More

From allegations of trade secret leaks at Taiwan's TSMC to layoffs at Baidu Inc, here's a recap of tech news this week.

$270,000 Drug. One Competitor. Billion-Dollar Market.

$270,000 Drug. One Competitor. Billion-Dollar Market. - Ad

Phase 3 trial targets recurrent pericarditis with an oral therapy that could disrupt the only approved treatment. And their heart failure program launches in 2026.

Asian shares retreat in cautious trading ahead of Nvidia profit report

TOKYO (AP) — Asian shares retreated in cautious trading Wednesday ahead of an earnings report from that is seen as a bellwether for the recent craze for artificial intelligence technology.

Trump Asks Sanae Takaichi Not To Provoke China After Japan PM Hinted At Military Action Over Taiwan Invasion

Trump urges Japan's PM not to provoke China over Taiwan. Tensions rise as Japan refuses to retract remarks about possible military action.

The Repeatable Strategy Behind 20+ Early Memecoin Wins (Revealed)

The Repeatable Strategy Behind 20+ Early Memecoin Wins (Revealed) - Ad

Few analysts have been able to consistently spot strong memecoin setups, but our team has developed a repeatable framework that has helped them identify high-momentum plays early. Now they've uncovered a new project showing similar characteristics, and they want you to see the full breakdown yourself.

Tesla Wants To Shift Away From China-Made Components For US Cars: Report

Tesla requires suppliers to exclude Chinese parts for US car production. Despite challenges, aim to switch all parts within 1-2 years.

Preliminary findings show a fatigue crack caused a Keystone Pipeline oil spill in North Dakota

BISMARCK, N.D. (AP) — A fatigue crack in the led to an that released thousands of barrels of oil onto farmland, according to the pipeline operator.

D.C.'s Quiet Plan for a New Tech Era

D.C.'s Quiet Plan for a New Tech Era - Ad

Why did federal agencies receive orders to "clear the runway" for a phenomenon most Americans haven't even heard of yet? And why are billionaires rushing in weeks before January 1? Whitney Tilson decoded the pattern.

Trump Rolls Back Tariffs On Coffee, Beef And More As Price Debate Heats Up— Here's What You Need To Know

President Donald Trump signed an executive order on Friday that retroactively lowers tariffs on beef, coffee, bananas, and tomatoes, among other agricultural imports.

BellRing Brands: No Ringing The Bell On This One, Not Yet

Our analysis uncovers the real reason behind BellRing Brands' steep fall and why the stock may struggle for much longer.

They've Done It 20+ Times-Now They've Found a New Memecoin to Watch

They've Done It 20+ Times-Now They've Found a New Memecoin to Watch - Ad

Our analysts have built one of the most reliable track records in the memecoin space by recognizing early momentum signals many traders overlook. Their newest pick shows several of the same early indicators found in past standout performers. Get the details before this story spreads.

SharpLink Gaming (SBET) Q3 2025 Earnings Call Transcript

SharpLink Gaming reported third-quarter financial results on Thursday. The transcript from the earnings call has been provided below.

Trump Hints At Tax Cut, John Bolton Warns Of Peace Prize Ambitions And More: This Week in Politics

Trump hints at major income tax cuts, while political tensions rise over military orders, Russia policy, and government shutdown threats.

The Smart Money Copper Trade

The Smart Money Copper Trade - Ad

Latest opioid settlement plan with OxyContin maker Purdue and Sackler family getting few objections

NEW YORK (AP) — Lawyers representing OxyContin maker Purdue Pharma, branches of the Sackler family that own it, cities, states, counties, Native American tribes, people with addiction and others across the U.S. are expected to deliver a nearly unanimous message for a bankruptcy court judge Friday: Approve a plan to settle thousands of opioid-related lawsuits against the company.

For conservative media, New York City Mayor-elect Zohran Mamdani quickly becomes attack target

New York City's incoming mayor, Zohran Mamdani, hasn't taken office yet. But he's already the new avatar of evil for conservative media figures.

Utility Over Hype: ETF Launch Alert

Utility Over Hype: ETF Launch Alert - Ad

This ETF isn't about speculation, it's about infrastructure. Seconds-level settlement, low fees, and institutional custody.

Meta alerts young Australians to download their data before a social media ban

MELBOURNE, Australia (AP) — Technology giant on Thursday began sending thousands of young Australians a two-week warning to downland their digital histories and delete their accounts from Facebook, Instagram and Threads before a world-first on accounts of children younger than 16 takes effect.

Trump Pressures Taiwan To Train US Workers As TSMC Struggles In Arizona: Report

The Trump administration is reportedly pressing Taiwan, including TSMC, to invest more in U.S. semiconductor manufacturing.

The Next ETF Era Begins with Payments

The Next ETF Era Begins with Payments - Ad

After Solana and Hedera, another digital-asset ETF has arrived and it targets global money movement.

Spanish court orders Meta to pay nearly half a billion euros in damages to media outlets

BARCELONA, Spain (AP) — Spanish legacy media companies in Spain scored a victory against social media giant Meta after a Madrid-based court ordered Thursday that it must pay news outlets nearly half a billion euros in damages.

Trending Now