On Tuesday, Citi updated its financial model for Jones Lang LaSalle (NYSE: JLL), a professional services firm specializing in real estate and investment management, leading to an increase in the stock's price target. The new target is set at $300.00, up from the previous $250.00, while the firm maintains a Neutral rating on the stock. Currently trading at $278.15, JLL has shown remarkable strength, with InvestingPro data showing a 72.8% return over the past year and trading near its 52-week high of $288.50.
The adjustment follows the third quarter earnings report from Jones Lang LaSalle. Citi's analyst has revised the full-year 2024 earnings per share (EPS) estimate to $13.63, up from the earlier projection of $12.61. Additionally, the forecast for the full-year 2025 EPS has been raised to $16.27 from the previous estimate of $15.74. According to InvestingPro, three analysts have recently revised their earnings upward for the upcoming period, suggesting growing confidence in the company's prospects.
The revised price target of $300 is based on an approximately 18 times multiple applied to the firm's adjusted EPS estimate for the year 2025. This valuation also corresponds to a 12 times multiple on the expected 2025 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).
Citi's updated price target reflects a reassessment of various factors impacting Jones Lang LaSalle's operations, including operating performance, financing conditions, and transaction assumptions. The new estimates and price target suggest a positive outlook on the company's financial trajectory over the next couple of years.
Investors and market watchers will likely monitor Jones Lang LaSalle's performance in relation to these updated projections, as the company continues to navigate the real estate and investment management markets. With a market capitalization of $13.2 billion and an overall financial health score of "GOOD" according to InvestingPro, which offers comprehensive analysis and 10+ additional ProTips for JLL, the company appears well-positioned in its sector. InvestingPro subscribers can access detailed valuation metrics and the complete Pro Research Report, providing deeper insights into JLL's market position and growth potential.
In other recent news, Wolfe Research has upgraded Jones Lang LaSalle's stock from Peer Perform to Outperform, setting a price target of $353.00. The firm anticipates Jones Lang LaSalle to trade at the average multiple of its coverage by the end of 2025 based on 2026 estimates. This upgrade reflects Wolfe Research's belief in Jones Lang LaSalle's ability to balance near-term growth prospects with the potential for higher earnings volatility, suggesting a growth rate of approximately 17% from 2024 to 2026.
In contrast, Wolfe Research downgraded Newmark to Peer Perform from Outperform, indicating a shift in the firm's sector outlook. These recent developments come as Jones Lang LaSalle reported its third-quarter 2024 earnings, emphasizing the resilience of its revenue streams despite ongoing market challenges. The company did not specify any financial misses and conveyed optimism about maintaining stability and finding growth opportunities.
Jones Lang LaSalle is adapting its strategies to navigate the current market conditions. This information, along with additional materials related to the earnings report, is accessible on the JLL Investor Relations website. Investors and stakeholders will be monitoring Jones Lang LaSalle's performance following Wolfe Research's upgrade and the company's recent earnings report.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.