Colliers International's High-Value Service Poised For Mid-Teens ROIC: Analyst

RBC Capital Markets analyst Jimmy Shan initiated coverage on Colliers International Group Inc CIGI at Outperform at a price target of $128.
The analyst believes CIGI's globally recognized brand and high-value service position it to generate ROIC in mid-teens.
Shan is also bullish on the company's asset-light business model, strong FCF generation and capital re-investment in synergistic businesses.
However, the analyst is concerned about the company's short-term growth prospects, as the largely frozen CRE transaction market is expected to worsen its capital markets business.
Nevertheless, Shan believes the headwinds can be curbed by highly profitable & scalable Investment Management, and Outsourcing & Advisory businesses and strategic acquisitions.
The analyst expects revenues of $4.35 billion and adjusted EPS of $6.36 in 2023 and $4.62 billion and $7.26, respectively, in 2024.
Price Action: CIGI shares are trading higher by 0.06% at $93.22 on the last check Wednesday.