5 Best Commercial Real Estate Stocks To Buy According To Hedge Funds

Page 5 of 5

1. CBRE Group, Inc. (NYSE:CBRE)

Number of Hedge Fund Holders: 41

CBRE Group, Inc. (NYSE:CBRE) specializes in providing commercial real estate services and investments worldwide. Its operations are divided into three segments – Advisory Services, Global Workplace Solutions, and Real Estate Investments. On April 27, CBRE Group, Inc. (NYSE:CBRE) reported a Q1 non-GAAP EPS of $0.92 and a revenue of $7.41 billion, outperforming Wall Street estimates by $0.02 and $320 million, respectively. 

On April 10, Chandni Luthra, an analyst at Goldman Sachs, reaffirmed a Buy rating on CBRE Group, Inc. (NYSE:CBRE) but slashed the price target for its shares from $103 to $90. The analyst informed investors of the additional challenges in property transactions given the current macroeconomic environment, making a recovery in commercial real estate more difficult in the latter half of 2023. Goldman Sachs believes that the outlook for commercial real estate service providers has become more challenging compared to a month ago. Consequently, the firm expects a potential downside to the 2023 guidance provided in CBRE’s Q4 results, leading to a reduction in estimates and price targets across the sector.

According to Insider Monkey’s first quarter database, 41 hedge funds were bullish on CBRE Group, Inc. (NYSE:CBRE), compared to 38 funds in the prior quarter. Harris Associates is the biggest stakeholder of the company, with 13.4 million shares worth $978.7 million. 

Baron Funds made the following comment about CBRE Group, Inc. (NYSE:CBRE) in its Q4 2022 investor letter:

“CBRE Group, Inc. (NYSE:CBRE) is the largest commercial real estate services firm in the world. It maintains a #1 worldwide market share position in each of its key business lines and has a pristine balance sheet.

It is currently valued at only 13 times our estimate of 2023 earnings per share versus a long-term average valuation multiple of 15 to 16 times earnings per share.

Our “other real estate-related companies” category includes those companies that do not fit neatly in more traditional real estate categories of REITs, residential-related real estate, and travel-related real estate. Other real estate-related companies currently include:

Commercial real estate services companies Examples: CBRE Group, Inc. and Jones Lang LaSalle Incorporated…” (Click here to read the full text)

Follow Cbre Group Inc. (NYSE:CBRE)

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 30 High-Paying Remote Jobs Without a Degree or Experience and 10 Best Beef Stocks to Buy Now.

Page 5 of 5