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CBRE Group initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of CBRE Group with an Equal Weight rating and $105 price target. The company is well positioned with a steady double-digit growth from recurring revenues, the potential for improving margins on expense efficiency, and reinvestment of excess cash flow, while a capital markets recover offers further upside optionality, the analyst tells investors in a research note. Morgan Stanley adds however that while it is “positively inclined” on CBRE, it prefers to wait for a more “opportunistic” entry point.

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