Jones Lang Lasalle: Top Idea Among Commercial Real Estate Names

JP Morgan's Anthony Pettinari raised their price target on Jones Lang Lasalle (NYSE: JLL) by 7% from $215 to $230 on 2024/06/21. The analyst maintained their Strong Buy rating on the stock.

In a recent note to investors, Pettinari expressed optimism about the commercial real estate brokers, stating that JP Morgan continues to be constructive on the sector. The analyst believes that the transactional and cyclical business lines of leasing, investment sales, and loan originations will recover to more normalized levels in the coming years, leading to a significant increase in EBITDA growth.

Looking ahead, Pettinari predicts strong EBITDA and earnings growth for all commercial real estate brokers from 2025 to 2027, exceeding the current comparable S&P 500 metrics. Among the three names covered by JP Morgan in the group, Jones Lang Lasalle is their top idea. Pettinari emphasized the company's focus on transactional businesses, improvement in margins driven by management, and a discounted valuation compared to its largest peer, Cbre Group.

The analyst's positive outlook on Jones Lang Lasalle is in line with the sentiments of other top-rated analysts. Currently, 66.7% of these analysts rate JLL as a Strong Buy or Buy, while 33.3% see it as a Hold. None of the analysts recommend or strongly recommend selling the stock.

According to the consensus forecast among analysts, JLL is expected to deliver earnings per share (EPS) of $9.14 in the upcoming year. If these predictions hold true, JLL's next yearly EPS will increase by an impressive 44.9% on a year-over-year basis.

Investors who have been holding JLL stock have reason to be pleased. Since the company's last quarterly report on 2024/03/31, the stock price has risen by 7%. On a year-over-year basis, JLL's stock has soared by 41.5%. These gains have outpaced the broader market, with JLL surpassing the S&P 500, which has risen by 25.2% during the same period.

Anthony Pettinari, the JP Morgan analyst behind the recent rating and price target update, is highly regarded in the industry. WallStreetZen ranks Pettinari in the top 2% of all Wall Street analysts, out of a total of 4,607 analysts. With an average return of 15.6% and a win rate of 60.9%, Pettinari specializes in analyzing the Basic Materials and Communication Services sectors, among others.

Jones Lang LaSalle Incorporated, the company being analyzed, is a major player in the real estate and investment management services industry. The company offers a range of services including agency leasing, tenant representation, capital market and equity advisory, loan sales and servicing, merger and acquisition advisory, and investment sales and advisory. Additionally, Jones Lang LaSalle provides on-site management services for various property types, such as office, industrial, retail, multifamily residential, and specialty properties. Founded in 1997 and headquartered in Chicago, IL, Jones Lang LaSalle has established itself as a prominent player in the real estate market.

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