NMRK: Expanded Asian Footprint Will Drive Future Earnings Upside

Analysts have modestly raised their price target on Newmark Group, lifting fair value from approximately 20.00 dollars to about 20.83 dollars, as they factor in slightly lower perceived risk and a marginally higher future earnings multiple.

What's in the News

• Newmark opened a new Korean office in Seoul’s IFC Complex, appointing veteran dealmaker John Pritchard as Managing Director and Country Head and assembling a multidisciplinary leadership team across key service lines (Company announcement).
• The Korean team includes specialists in retail, tenant representation, research, and corporate real estate strategy, recruited from leading multinational commercial real estate firms and focused on Korea’s most active sectors (Company announcement).
• The company expanded its Property and Facilities Management businesses into India, further extending its international operating footprint (Company announcement).
• Newmark raised its 2025 earnings guidance and now expects total revenues between 3.175 billion and 3.325 billion dollars, implying roughly 18.5 percent growth at the midpoint (Company guidance).
• The firm reported that since launching its share repurchase program in May 2018, it has bought back about 85.1 million shares, or 46.89 percent of shares outstanding, for approximately 1.0 billion dollars, with no additional repurchases in the latest quarter (Company filing).

Valuation Changes

• The fair value estimate has risen slightly from about 20.00 dollars to approximately 20.83 dollars per share.
• The discount rate has edged down modestly from roughly 10.57 percent to about 10.51 percent, reflecting a small reduction in perceived risk.
• The revenue growth assumption is effectively unchanged, holding near 7.80 percent.
• The net profit margin assumption remains broadly stable, staying close to 7.02 percent.
• The future P/E multiple has increased slightly from around 17.5 times to about 18.2 times projected earnings.