Goldman upgrades JLL, still prefers CBRE

• While capital markets (property sales) activity is clearly decelerating, says analyst Brad Burke, capital markets represents just 25% of the JLL's (JLL +4.3%) 2016 estimated EBITDA. The company should still be able to realize strong growth thanks to market share gains and business diversity.
• Among the risks are JLL's exposure to the U.K. (about 10% of EBITDA) amid the Brexit uncertainty. With the stock off 40% from the 52-week high, though, this may already be priced in.
• He upgrades JLL to Buy, but still prefers CBRE (CBG +2.7%) thanks to less U.K. exposure, more Y/Y benefit from recent M&A, and less pressure from tough investment management comps. He boost the PT to $38 from $35 (vs. current $28.53).
• Previously: JLL touched by Goldman, gains 3% early (May 20)