JPMorgan upgrades CBRE on constructive commercial real estate stance

JPMorgan analyst Anthony Paolone upgraded CBRE Group (CBRE) to Overweight from Neutral with a price target of $163, up from $120. The firm remains constructive on the commercial real estate brokers heading into 2025. While the “easy money” has been made, the companies are on the front end of a rebound in commercial real estate sales and leasing activity that could last several years and result in a “beat-and-raise earnings cycle,” the analyst tells investors in a research note. JPMorgan sees “outsized” earnings growth through 2027 when compared with the broader equity market. CBRE is the “blue chip in the space with a strong track record of execution and ample liquidity to play offense when opportunities emerge,” the firm contends.