CBRE Group (CBRE) invests in and manages a global Commercial Real Estate (CRE) portfolio, explains Todd Shaver, growth stock specialist and editor of BullMarket.
The company has been investing in digital technology and strategic acquisitions. One example is the 2017 acquisition of Custom Spaces, a CRE brokerage firm that specializes in advising technology companies on occupancy decisions.
Its “Millennial-Friendly Design” attracts tech-savvy entrepreneurs and startups who are looking for authentic work environments they can’t get at a standard “cubicle farm.”
CBRE’s management has excelled at acquiring small, niche players, and then folding them into the parent company’s business model. Now that CBRE has incorporated Custom Spaces’ strategic approach, the company can quickly scale that approach and reap major rewards.
CBRE is a terrific way to play both real estate and technology simultaneously, combining two of the most vibrant sectors in the market right now. The company blends a dominant industry position with a forward-thinking management style and grand ambitions for reshaping global real estate.
Meanwhile, the stock has been flirting with its all-time high at $50, we suspect the post-earnings consolidation gives investors an opportunity to buy the dip. Expectations are high but the business is better, smashing even our aggressive 40% revenue growth target in the recent quarter.
When you’re building on a $3.7 billion base, an upside surprise like this really moves big needles: there’s now an extra $5 million a day flowing into this stock’s income statement and feeding what’s already 15% earnings growth.
The acquisitions strategy is working. After the last conference call, we’re now convinced our previous sense of the company’s future wasn’t aggressive enough. Our target remains $60. This one is slow and steady and may take a while to get there, but we believe it will.
