Newmark Group Stock Intrinsic Value – Piper Upgrades Newmark to Overweight as CRE Recovery Play

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The Piper Sandler firm has recently upgraded Newmark Group ($NASDAQ:NMRK), a commercial real estate services and investment firm, to an Overweight rating. This is due in part to its potential as a commercial real estate recovery play in the post-pandemic economy. Newmark Group, Inc. is a leading provider of commercial real estate services. It offers a comprehensive suite of services and solutions for both owners and occupiers of commercial real estate across the Americas, Europe, and Asia Pacific. The Piper Sandler upgrade to an Overweight rating is based on the expectation that Newmark Group’s portfolio of assets will benefit from the commercial real estate recovery following the economic effects of the pandemic. The firm noted that Newmark has strong fundamentals, a well-diversified portfolio of assets, and is well-positioned to benefit from an improving economy.

In addition, Piper Sandler analysts are confident that Newmark’s focus on acquisition and development of core and core-plus assets—and its ability to leverage technology in order to expedite transactions—will result in strong returns for shareholders. This is due to the firm’s ability to capitalize on opportunities that are driven by technology as well as the potential for increased demand from tenants looking for higher quality spaces. Overall, Piper Sandler’s upgrade to an Overweight rating for Newmark Group reflects the firm’s confidence in the commercial real estate recovery and Newmark’s ability to capitalize on this trend. With its strong portfolio of assets and strategic focus on core and core-plus assets, Newmark is well-positioned to benefit from this recovery and deliver long-term value for shareholders.

Share Price

On Wednesday, NEWMARK GROUP made waves in the investing world when Piper Sandler upgraded the company’s stock to an “overweight” rating. In response to the news, NEWMARK GROUP opened at $10.4 and closed at $10.2, up 1.3% from the prior closing price of 10.1. The stock’s increase is reflective of investors’ optimism regarding the company’s prospects in the commercial real estate (CRE) recovery market. With its higher rating, Piper Sandler believes that NEWMARK GROUP is primed to take advantage of the recovery in CRE and that their stock could continue to rise.

Analysts are expecting that, with the company’s elevated rating, more investors may be drawn to NEWMARK GROUP in the coming weeks. As the CRE markets warm up, many are optimistic that NEWMARK GROUP could be a major beneficiary. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Newmark Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Newmark Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Newmark Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Newmark Group are shown below. More…

Analysis – Newmark Group Stock Intrinsic Value

GoodWhale has conducted a thorough analysis of NEWMARK GROUP‘s fundamentals and have concluded that the fair value of their shares is around $13.1. This fair value was calculated using our proprietary Valuation Line, which factors in several metrics such as the company’s performance, financials, industry dynamics, and other factors. Currently, NEWMARK GROUP’s stock is trading at $10.2, indicating that it is undervalued by 21.8%. As such, this could be a great opportunity for investors to take advantage of and buy up a significant amount of shares in the company. More…

Peers

Newmark Group Inc is one of the world’s largest commercial real estate services firms. Its competitors include CBRE Group Inc, Jones Lang LaSalle Inc, and Cushman & Wakefield PLC. Newmark Group Inc has a diversified business model with operations in multiple geographies and business segments. The company’s services include property and asset management, investment banking, valuation, consulting, research, and investment management.

– CBRE Group Inc ($NYSE:CBRE)

CBRE Group Inc is a commercial real estate services and investment firm. As of 2022, it has a market capitalization of 21.75 billion dollars and a return on equity of 20.08%. The company provides services such as property management, financing, leasing, and market research.

– Jones Lang LaSalle Inc ($NYSE:JLL)

As of 2022, Jones Lang LaSalle Inc has a market cap of 6.63B and a Return on Equity of 13.87%. The company is a professional services and investment management company specializing in real estate.

– Cushman & Wakefield PLC ($NYSE:CWK)

Cushman & Wakefield PLC is a leading global real estate services firm with a market capitalization of $2.39 billion as of 2022. The company has a strong return on equity of 27.74%. Cushman & Wakefield provides a full range of services to occupiers and investors around the world, including leasing, sales and acquisitions, financing, property and asset management, appraisals, consulting, and valuation. The company has more than 53,000 employees in 60 countries.

Summary

Newmark Group is an attractive investment opportunity as it is positioned to benefit from the recovery of the CRE (Commercial Real Estate) market. Recently Piper upgraded the stock from Neutral to Overweight, citing Newmark’s potential for strong gains as the CRE market continues to strengthen. Newmark’s business strategy focuses on providing commercial real estate services including helping clients buy, sell, and finance real estate transactions through its subsidiaries. The company’s focus on technology investments has enabled it to add value for clients and grow market share in key segments.

Newmark has also been investing in its ability to source capital, allowing them to better serve clients. Overall, Newmark Group is a compelling investment opportunity in the CRE market given its presence in key geographic areas and strength in both services and capital markets.