Market Overview

Morgan Stanley, JPMorgan Upbeat On Cushman & Wakefield's Potential

Morgan Stanley, JPMorgan Upbeat On Cushman & Wakefield's Potential

Commercial real estate services company Cushman & Wakefield PLC (NYSE: CWK) recently offered 45 million shares in an IPO. With the IPO quiet period expiring, sell-side began coverage has begun for shares of the company.

The Analysts

Morgan Stanley analyst Vikram Malhotra initiated coverage of Cushman & Wakefield with an Overweight rating and $21 price target.

JMP Securities analyst Mitch Germain initiated coverage with a Market Outperform rating and $20.50 price target.

Morgan Stanley: Revenue, Margins to Support Multiples

Cushman's size and global scale position it well to compete against peers, Morgan Stanley's Malhotra said in a Monday note.

Despite indicators suggesting a late cycle in the U.S., the company remains poised to gain share through key hires, cross-selling and bolt-on M&A, the analyst said.

Morgan Stanley forecast several drivers of strong margin expansion over the next two years. The firm estimates 10-percent CAGR for revenue and conservative EBITDA margin growth of 100 basis points, both of which are ahead of consensus estimates.

JMP's Reasons To Be Positive

Largely durable revenue and margin accretion opportunity are the drivers behind JMP's positive stance, Germain said in the initiation note.

Cushman has ample liquidity to pursue M&A, recruit and retain well-regarded producers and attempt technology initiatives, the analyst said. 

The company's recent capital raise accelerates the deleveraging story, according to JMP.

The Price Action

Cushman shares have lost about 0.9 percent since listing Aug. 2. The stock was up 1.64 percent late in Monday's trading session at $17.93. 

Related Links:

Wells Fargo Upgrades KKR Real Estate Finance Trust: 3 Reasons Why

Renters Vs. Buyers: Who Has More Money Left Over?

Photo by Fletcher6/Wikimedia. 

Latest Ratings for CWK

Oct 2019Initiates Coverage OnNeutral
Sep 2019MaintainsOverweight
Jul 2019Initiates Coverage OnNeutral

View More Analyst Ratings for CWK
View the Latest Analyst Ratings

Posted-In: JMP Securities Mitch Germain Morgan StanleyAnalyst Color Price Target Initiation Analyst Ratings Real Estate Best of Benzinga


Related Articles (CWK)

View Comments and Join the Discussion!

Latest Ratings

ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Mutual Funds: Looking To Boost Your Portfolio Diversification?

Morgan Stanley Double Downgrades US Steel, Makes Bullish Turn On 2 Rivals