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Jones Lang LaSalle (JLL) shares have fallen about 12% after Zillow issued a softer housing outlook, which pulled real estate stocks lower and put JLL’s upcoming February 18 earnings update under a brighter spotlight.
See our latest analysis for Jones Lang LaSalle.
The recent 7 day share price return of 15.64% decline and 30 day share price return of 14.90% decline suggest momentum has cooled ahead of earnings, although the 3 year total shareholder return of 64.47% and 5 year total shareholder return of 84.27% still point to a much stronger longer term picture.
If Zillow’s update has you reassessing real estate exposure, it could be a good moment to widen your search and check out 23 top founder-led companies as potential ideas beyond this sector.
With JLL trading at $289.15 against an analyst price target of $381 and an estimated intrinsic value implying roughly a one third discount, the key question is whether this gap signals an opportunity or if the market is already accounting for future growth.
With Jones Lang LaSalle’s fair value estimate at $358.40 against the latest close of $289.15, the most followed narrative sees meaningful upside still on the table.
Rapid growth in annuity like, recurring revenue streams from Workplace and Project Management driven by increased corporate outsourcing and new contract wins supports higher revenue visibility and margin stability, with the company guiding for high single to low double digit organic revenue growth in these areas and ongoing margin expansion.
Read the complete narrative. Read the complete narrative.
Curious what kind of revenue mix and profit profile would support that higher value, especially with a higher discount rate baked in and only moderate revenue growth expected overall, but firmer margins doing more of the heavy lifting, and a future earnings multiple that sits below where many peers trade today.
Result: Fair Value of $358.40 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that upside view still hinges on brokerage volumes holding up. Any renewed weakness in office demand or capital markets activity could quickly challenge it.
Find out about the key risks to this Jones Lang LaSalle narrative.
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