Keefe Bruyette analyst Jade Rahmani downgraded CBRE Group to Market Perform from Outperform with an unchanged price target of $88. The analyst reduced commercial real estate broker estimates to 10%-20% below the consensus, driven by more conservative assumptions around volume, margins, and other income. As the broker stocks have rebounded 10% year-to-date, the firm recommends an underweight position near-term given uncertainty in commercial real estate markets. The analyst downgraded CBRE citing the modest upside to the price target and the stock’s 25% premium to peers.
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