Jones Lang LaSalle (JLL) is set to benefit from improving industry tailwinds amid attractive valuation after its Q3 results, UBS Securities said in a Sunday note.
The report pointed to an outlook downgrade for its Real Estate Management Services segment for the next several quarters while Q3 margin expansion disappointed, similar to peers.
"However, forward estimates are increasing on the better brokerage outlook and lower interest expense, which more than offsets these two negatives," the report said.
Valuation has contracted as Street estimates have come up and the shares are currently trading in line with the 5-year median at just over 15x, the note added.
"With the industry outlook for a continued improvement in
brokerage businesses...and greater margin expansion potential than peers according to our forecasts, JLL remains our top pick of the CRE Brokers," the report said.
UBS kept its buy rating on the stock, with a price target of $360.
Price: 295.89, Change: -6.68, Percent Change: -2.21
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