Colliers International initiated with a Buy at Stifel

Stifel initiated coverage of Colliers International with a Buy rating and $130 price target. The firm is initiating coverage of a collection of special situations companies, noting that the group of companies operate in separate and distinct industries, but are loosely related given a shared focus on “growth-by-acquisition” strategies. Public investors have taken an increasingly cautious view towards capital-heavy consolidators and are no longer rewarding “growth-for-growths’ sake” given the recent record rise in interest rates and significantly tighter credit environment, the analyst tells investors. However, the valuations for many of the leveraged consolidators the analyst covers have contracted far faster than their fundamentals and are “now mostly discounting a higher-for-longer interest rate scenario,” the analyst added.