Canaccord sustainability analyst Eric Prouty reduced his 2012 Jones Lang LaSalle revenue estimate to $3.734 billion from $3.970 billion and his 2012 earnings per share estimates to $5.50 from $6.00.
“We believe the slowdown in economic growth, particularly in Europe and the US, is negatively affecting the commercial real estate market. Based on our conversations with industry participants, this slowdown did not become apparent until recently (i.e., September), but is likely to persist for the remainder of this year and into 2012.”
He also noted “a recent slowdown in demand to invest in so-called trophy properties in the most expensive real estate markets. This dynamic, combined with general economic uncertainty and weaker demand for commercial mortgage-backed securities, creates near-term headwinds for JLL, in our view.”