The Real Deal Miami

CBRE earnings forecast meets with skepticism

March 25, 2010 12:24PM

CB Richard Ellis is telling investors to expect 15 to 20 percent in earnings growth this year, but some analysts are skeptical that the optimistic predictions hold water. The company, which some estimate lost 31 percent in cash flow during 2009 and which has a debt load recently described by Morningstar as “massive,” has at the same time seen its stock rise to a 17-month high of $15 per share, leaving some concerned that it could crash and burn. The company has $2.4 billion of long-term debt, up to half of which will mature before 2013, when many believe the commercial real estate market will have finally recovered. ”I don’t think you’re buying this stock for 2010 earnings, and perhaps not even for 2011 earnings,” said Anthony Paolone, an analyst at JPMorgan Securities.