CIGI Stock Forecast & Price Target

Colliers International Group Inc has demonstrated a significant expansion in its EV/EBITDA multiple, increasing by approximately 2 turns year-to-date, with expectations for an additional turn of expansion. The company's focus on increasing recurring revenues has established a predictable cash flow stream, which is complemented by strong embedded organic growth, suggesting a positive trend in valuation multiples. Furthermore, anticipated Real GDP growth rates of 1.4% in 2026 reinforce a favorable economic backdrop for the company's operations, enhancing the outlook for its financial performance.

Colliers International Group Inc. (CIGI) is currently trading at a 1.7x discount to its closest competitor, CBRE, marking the worst relative performance spread in the past decade, which is a significant deviation as CIGI historically traded at a premium. The company operates primarily within a challenging landscape for commercial real estate brokers, as evidenced by their historical underperformance during periods of steepening yield curves compared to the S&P 500, which raises concerns about future growth prospects. While there may be potential cyclical drivers and structural tailwinds from anticipated rate cuts that could spur real estate investment, the current unfavorable competitive positioning and economic conditions present a negative outlook for CIGI's stock.