Is Jones Lang LaSalle (JLL) Cheap As Leasing Wins Meet A Softer Share Price?

The fresh mandate for Jones Lang LaSalle (JLL) as exclusive office leasing agent for San Francisco’s Fifty at First project gives investors a new data point on the company’s role in a long dated urban recovery effort.

Recent trading has been softer, with the share price down 15.33% over the past month and 8.64% year to date. Even so, Jones Lang LaSalle still shows a 5.41% 1 year total shareholder return and a very large 3 year gain of around 13x. This suggests that investors may be reassessing near term risk while viewing a longer term recovery story as still intact.

Compare Jones Lang LaSalle with other real estate and infrastructure focused plays that also screen well on quality and value using our hand picked 31 high quality undervalued stocks.

So is Jones Lang LaSalle’s recent pullback telling you something has changed in the business, or has sentiment simply swung harder than the fundamentals justify, and what does that mean for where the valuation now sits?

Most Popular Narrative: 28% Undervalued

Against a last close of $306.81, the most followed narrative puts Jones Lang LaSalle’s fair value at $427.00. This frames the recent pullback as a potential valuation gap rather than a clear verdict on the underlying business.

Rapid growth in annuity-like, recurring revenue streams from Workplace and Project Management, supported by mid to high single digit growth in Real Estate Management Services and high single digit to double digit growth in Workplace Management alongside 25% two year stacked growth in Project Management, supports higher revenue visibility and margin stability that can feed into earnings power.

See why 9 investors see Jones Lang LaSalle as 28% undervalued.

Result: Fair Value of $427.00 (UNDERVALUED)

Still, the Jones Lang LaSalle story depends on transactional markets holding up and on office related demand not weakening further, especially in higher vacancy regions.

Find out about the key risks to this Jones Lang LaSalle narrative.

Next Steps

If the tone so far feels cautiously optimistic on Jones Lang LaSalle, move quickly to pressure test that view using the 5 key rewards.

Looking for more investment ideas beyond Jones Lang LaSalle?

If Jones Lang LaSalle has sharpened your focus on quality, now is the moment to widen your opportunity set across different return profiles and risk levels.

• Target potential mispricings by scanning a carefully filtered group of companies that look attractively priced on fundamentals using the 31 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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