On Friday, Goldman Sachs initiated coverage on Jones Lang LaSalle (NYSE:JLL), a professional services firm specializing in real estate and investment management, with a Buy rating and a price target of $352.00. Currently trading at $273.47 and boasting a market capitalization of nearly $13 billion, JLL has demonstrated impressive momentum with a 67% return over the past year. The firm expressed confidence in JLL's ability to capitalize on the anticipated upswing in the brokerage business.
The analyst from Goldman Sachs highlighted JLL's significant presence in the capital markets, noting that the company has been the largest market share winner in recent commercial real estate (CRE) investment sales, both over the long term and in the more recent period. According to InvestingPro data, JLL maintains a strong financial health score of 2.82 (rated as GOOD), with robust revenue growth of 9.86% over the last twelve months. This success is attributed to strategic mergers and acquisitions, notably the acquisition of HFF in 2019, as well as investments in talent acquisition and organic market share growth.
JLL's adoption and investment in technology through its JLL Technologies and Spark platforms were also emphasized as factors contributing to the increased productivity of its brokers. The firm believes that these technological advancements will continue to drive organic market share gains for JLL.
Moreover, Goldman Sachs pointed out JLL's top-ranked position in mortgage origination within their coverage, as seen in Exhibit 66. The analyst anticipates that JLL is particularly well-situated to benefit from the early stages of recovery in the capital markets, forecasting a capital markets growth of 15.4% in 2025, which is 300 basis points higher than the consensus. Trading at a P/E ratio of 27.4, JLL shows promising potential despite being slightly overvalued according to InvestingPro's Fair Value analysis. For deeper insights into JLL's valuation and growth prospects, including 10+ additional ProTips and comprehensive financial metrics, explore the full Pro Research Report available on InvestingPro.
In other recent news, Jones Lang LaSalle (JLL) has been the subject of several significant developments. After the recent release of the third-quarter earnings report, Citi revised its full-year 2024 earnings per share (EPS) estimate for the company to $13.63, up from the earlier projection of $12.61. The estimate for the full-year 2025 EPS was also raised to $16.27 from the previous estimate of $15.74.
In response to these changes, Citi set a new price target for JLL at $300.00, maintaining a neutral rating on the stock. Wolfe Research also adjusted its stance on JLL, upgrading the stock from Peer Perform to Outperform and setting a price target of $353.00. The firm anticipates JLL to trade at the average multiple of its coverage by the end of 2025 based on 2026 estimates.
These recent developments follow JLL's report of resilient revenue streams in the third quarter of 2024, despite ongoing market challenges. The company did not specify any financial misses and conveyed optimism about maintaining stability and finding growth opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.