CBG Outsourcing Business Still Strong, J.P. Morgan Reports

CB Richard Ellis Group, Inc. (NYSE: CBG) continues to have good success in its outsourcing business. J.P. Morgan reports.

“The company noted that the outsourcing model continues to gain acceptance among various companies, particularly in light of the cost savings that CBG pointed to – management indicated that it provides $5 of ‘value' for every $1 of fees the client pays to CBG,” J.P. Morgan writes.

“In addition to expanding this business globally (particularly Asia), CBG pointed to opportunities in areas such as healthcare, government, and more nontraditional real estate (i.e., cell towers) as a source of future growth.”

CB Richard Ellis Group currently trades at $19.35.