Cushman stock price climbs as analysts begin coverage with bullish outlook

Six brokerages rated it a “buy”

National /
Aug.August 30, 2018 08:30 AM

Brett White and Cushman and Wakefield at 225 Wacker Drive in Chicago (Credit: 225WestWacker)

Stock analysts began their coverage of Cushman & Wakefield with a largely bullish outlook on the newly public company.

At least six brokerages started their coverage of the Chicago-based firm with ratings equivalent to a “buy,” MarketWatch reported Wednesday.

The stock analysts cited Cushman’s competitive market position as one of the three global real estate service firms alongside CBRE and JLL.

“Less than half of the addressable market is currently outsourced to real estate providers such as Cushman,” wrote Credit Suisse analyst Douglas Harter.

A note from financial services firm William Blair pointed out that Cushman generates more revenue than its main competitors — about 47 percent, or a third of adjusted EBITDA — from clients outsourcing services, a growing revenue stream for brokerages.

Cushman’s stock price rose 1.5 percent to $17.92 on Monday, according to MarketWatch. That was about 5 percent above its initial public offering price of $17 per share on August 1.

Analysts at Morgan Stanley said they expect Cushman to show higher-than-anticipated revenue growth and margin expansion, “[d]espite late cycle concerns.”

But William Blair noted that the large levels of debt private-equity owner TPG Group loaded on to Cushman could hinder the company when trying make certain mergers and acquisitions.

And JPMorgan analyst Anthony Paolone wrote in a note that, ““We don’t see liquidity issues with Cushman running at its higher leverage level, but we do think that to the extent business trends were to weaken, it would exacerbate the downside.” [MarketWatch] — Rich Bockmann

 

Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Blackstone Group's Stephen Schwarzman, KKR's Henry Kravis and Apollo's Leon Black (Getty, Facebook, iStock)
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Turnbridge Equities founder Andrew Joblon, KKR co-founder Henry Kravis and the distribution center (Getty, Turnbridge)
Turnbridge, Dune land $381M loan for Hunts Point site
Turnbridge, Dune land $381M loan for Hunts Point site
Vanbarton Group’s Gary M. Tischler and Richard Coles with Marble Collegiate Church at 1 West 29th Street (Getty)
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Northwind Group managing partner Ran Eliasaf and 165 Lexington Avenue (Northwind Group, Brooklyn North Capital)
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
One man, two companies, three bankruptcies
One man, three bankruptcies: Verrino Construction files for Chapter 7
One man, three bankruptcies: Verrino Construction files for Chapter 7
Maverick Real Estate Partners principal David Aviram and 416 West 25th Street (Google Maps and LinkedIn)
Maverick denied yet again in battle over Chelsea rental
Maverick denied yet again in battle over Chelsea rental
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...