Jefferies has revised its price target for JLL (JLL, Financial) down to $264 from $266. This adjustment reflects the impact of increased macroeconomic and interest rate volatility on target multiples. Despite these challenges, the firm continues to recommend a Buy rating for the stock.
In the first quarter, JLL saw strong performance driven by Office and Industrial leasing, with Capital Markets also demonstrating robust results amid a more uncertain economic environment. As the company moves into the second quarter, Jefferies notes that pipelines are holding steady as capital allocators remain active, although rising interest rates could potentially slow activity.
With JLL's stock still 22% below recent highs, Jefferies believes that consistent results might lead to improved market sentiment towards the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Jones Lang LaSalle Inc (JLL, Financial) is $302.57 with a high estimate of $349.00 and a low estimate of $266.00. The average target implies an upside of 36.79% from the current price of $221.20. More detailed estimate data can be found on the Jones Lang LaSalle Inc (JLL) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Jones Lang LaSalle Inc's (JLL, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Jones Lang LaSalle Inc (JLL, Financial) in one year is $234.40, suggesting a upside of 5.97% from the current price of $221.195. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Jones Lang LaSalle Inc (JLL) Summary page.
JLL Key Business Developments
Release Date: May 07, 2025
- Revenue Growth: Double-digit revenue gains across resilient and transactional businesses.
- Adjusted EPS Growth: 28% increase in adjusted EPS.
- Debt Advisory Revenue Growth: Over 45% increase in the first quarter.
- Leasing Advisory Revenue Growth: 18% increase in office leasing revenue; 14% increase in industrial leasing revenue.
- Capital Market Services Revenue Growth: 45% growth in debt advisory; 15% growth in investment sales.
- Investment Management Fundraising: $1.9 billion raised in the first quarter, compared to $500 million a year ago.
- Liquidity: Total liquidity of $3.3 billion, including $2.9 billion of undrawn credit facility capacity.
- Net Leverage: Reported net leverage of 1.4 times as of March 31.
- Share Repurchases: $20 million of shares repurchased in the first quarter.
- Full Year Adjusted EBITDA Target: Maintaining target range of $1.25 billion to $1.45 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Jones Lang LaSalle Inc (JLL, Financial) reported double-digit revenue gains across both resilient and transactional businesses, with a 28% growth in adjusted EPS.
- The company experienced significant growth in its debt advisory business, with revenue growth exceeding 45% in the first quarter.
- JLL's real estate management services business capitalized on the growing trend of outsourcing, contributing to strong revenue growth.
- The company has a strong balance sheet with liquidity totaling $3.3 billion, including $2.9 billion of undrawn credit facility capacity.
- JLL's investment management business saw strong fundraising demand, particularly for its US credit strategy, raising $1.9 billion in the first quarter.
Negative Points
- The market backdrop has become more dynamic, creating a more challenging operating environment for companies.
- Some clients are delaying decision-making due to macroeconomic developments, impacting short-term business performance.
- The investments in technology and human capital have weighed on the segment's adjusted EBITDA performance.
- There is uncertainty in the macroeconomic environment, which may affect transaction activity and investor underwriting.
- The company faces tougher revenue comparisons in the second half of the year due to strong growth in the previous year.
