On Wednesday, Keefe, Bruyette & Woods adjusted the price target for Jones Lang LaSalle (NYSE:JLL) shares, increasing it to $200.00 from the previous target of $190.00. The firm has kept its Market Perform rating on the real estate and investment management services company's stock.
The adjustment comes after a review of the first quarter performance and projections for the future. Keefe, Bruyette & Woods recalibrated their estimates for the second to fourth quarters of 2024 based on the anticipated timing of the market's recovery but maintained their expectations for 2025.
The firm forecasts a revenue growth of approximately 4% for Jones Lang LaSalle in 2024, excluding gross contract costs. This includes an estimated 4.0-4.5% growth in capital markets and leasing activities. For 2025, the firm projects a growth exceeding 10%, with a margin of 15.0%.
The revised estimates suggest that Jones Lang LaSalle's shares are trading at multiples of 12 to 16 times the anticipated adjusted earnings per share (AEPS) for 2024-2025 and 9 to 10 times the adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA).
The firm notes that while the valuation based on out-year estimates appears modestly attractive, they anticipate the stock will remain range-bound until there is better visibility on the recovery.
The rationale behind maintaining the Market Perform rating, despite the increased price target, is based on the current market conditions and the visibility of a financial recovery.
Keefe, Bruyette & Woods suggests that investors may need to wait for clearer signs of recovery before a more definitive performance trend for Jones Lang LaSalle's shares can be established.
InvestingPro Insights
According to recent data from InvestingPro, Jones Lang LaSalle (NYSE:JLL) is showing promising financial metrics that could be of interest to investors. With a market capitalization of $8.93 billion and a forward-looking P/E ratio of 25.25, the company is positioned at a valuation that may attract attention. Notably, the company's revenue has grown by 1.89% over the last twelve months as of Q1 2024, and its gross profit margin stands at a healthy 51.56%. These figures suggest a solid financial foundation.
InvestingPro Tips highlight that Jones Lang LaSalle has been trading at a low revenue valuation multiple and has seen a significant price uptick over the last six months, with a total return of 32.35%. Additionally, the company has been recognized as a prominent player in the Real Estate Management & Development industry, which could further underscore its market position. With management actively buying back shares and a history of raising its dividend for 9 consecutive years, JLL may present a compelling case for investors looking for stability and growth potential.
For those interested in a deeper analysis, InvestingPro offers additional insights on Jones Lang LaSalle. There are more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/JLL. Investors can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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