Key takeaway - Citizens retained a Market Perform rating on Colliers International Group, even after the company's shares plunged sharply over the most recent week. The analyst flagged the broader property services sector weakness but said the recent sell-off has made the stock's valuation relatively more attractive.
Citizens reiterated its Market Perform stance on Colliers International Group (NASDAQ:CIGI), emphasizing that the dramatic decline in the stock over the past week has improved the valuation case despite being part of a sector-wide move lower. Data from InvestingPro show Colliers' shares fell 22.6% in the prior week and are down 30.28% over the last six months.
The firm noted historical context for Colliers' multiples. Traditionally, Colliers has traded around the sector average or at a modest premium, a positioning Citizens attributes to more durable earnings and insider ownership that aligns management and shareholder interests. In the current trading environment the shares sit at a slight discount to peers.
On valuation metrics, Citizens calculates the stock is trading at roughly 15 times estimated earnings per share for 2026. That multiple is about a half-turn lower than the sector average, which the analyst views as a fair representation of the company's outlook given recent weakness in the group. Citizens included this commentary while also observing that the recent drop in the share price was broad-based across the property services industry. The analyst stated: "While the recent sell-off in the shares makes the valuation more compelling, the move was broad-based across the entire property services sector."
From an operational perspective, Colliers projects mid-teens growth in the bottom line, though Citizens underscored the company's heavy reliance on mergers and acquisitions to drive expansion. Organic revenue growth for 2025 was reported at 5%, a pace that Citizens expects will lag peer companies. This organic growth figure sits alongside Colliers' reported five-year revenue compound annual growth rate of 15%.
Recent quarterly results have added to the scrutiny. Colliers' fourth-quarter 2025 earnings fell short of analyst expectations, with earnings per share of $2.34 versus projected EPS of $2.43. Revenue for the quarter was $1.43 billion, below the anticipated $1.61 billion. Those misses represent a notable shortfall in both the top and bottom lines, and they have drawn attention from investors and sell-side analysts.
Following the earnings release, there were no announced updates related to mergers or acquisitions. Analysts have not posted any public upgrades or downgrades in the immediate aftermath of the report. Citizens appears to be weighing the weaker near-term results, the companys dependence on M&A-led growth, and the current market-driven valuation in reaching its Market Perform recommendation.
Context for stakeholders - For shareholders and market participants tracking property services names, Colliers' recent price action, guidance, and missed quarterly targets are central to assessing near-term performance. The interplay between organic growth, M&A activity, and sector-wide sentiment will likely determine whether the current valuation gap relative to peers narrows or widens.