Analyst Note| Yousuf Hafuda |
Cushman & Wakefield reported third-quarter financial results that echo the scale of cratering brokerage business we’ve seen from larger rivals CBRE and Jones Lang LaSalle, offset slightly by strength in the property and facilities management business. The company reported third-quarter fee revenue of $1.3 billion, a 14% decline from the third quarter of 2019. This is certainly a material decrease, but it compares favorably with the second quarter of 2020, which saw fee revenue decline 24%. All indications are that the second-quarter figures will represent the trough in terms of financial results for this current downturn. With third-quarter results largely reinforcing our view on the future financial results of narrow-moat-rated Cushman & Wakefield, we are maintaining our $21 fair value estimate.