Raymond James downgrades Newmark on investment sales sensitivity

Raymond James analyst Patrick O’Shaughnessy downgraded Newmark to Market Perform from Outperform without a price target. The analyst cites the company’s greater sensitivity to investment sales revenue relative to its peers for the downgrade. However, Newmark won the mandate to sell a $33B loan portfolio formerly owned by Signature Bank, which should help support near-term financial results “to some extent,” the analyst tells investors in a research note. In light of commentary from CBRE Group at a conference in early September and the recent push higher in long-term interest rates, the firm reduced second half of 2023 and 2024 revenue and earnings estimates for the commercial real estate services providers.