Piper Sandler has reiterated an Overweight rating on Newmark Group, Inc. (NASDAQ:NMRK) and held its $19.00 price target after a notable market selloff on Wednesday. The $3.63 billion market capitalization real estate services company was trading at $14.95, while published analyst targets run between $19 and $24, according to InvestingPro data.
The stock fell roughly 13% on Wednesday, tracking similar downward moves among other firms in the sector. Office real estate investment trusts registered a more modest decline of about 4% on the same day. Newmark’s beta of 1.85 underscores the stock’s tendency to move with greater amplitude than the broader market.
Piper Sandler observed that the selloff took place even though the headline jobs report initially appeared constructive - the payrolls number showed 130,000 new jobs against consensus estimates of 55,000. The research team pointed out that the 10-year Treasury yield ticked up only slightly to 4.17% from Tuesday’s 4.14%, a change the firm described as "hardly disruptive to CRE financing." Given those dynamics, Piper Sandler suggested the equities retreat may have been influenced by other forces, including concerns related to AI that have affected a range of industries recently.
Maintaining its positive stance, Piper Sandler characterized Newmark as a capital-lite vehicle that is levered to a growing economy, and one that stands to benefit as various elements of commercial real estate activity strengthen.
On the corporate activity front, Newmark has been an active arranger of large refinancing loans. Among recent transactions, the firm secured a $690 million loan for West Shore to refinance 13 multifamily properties located in Florida, Kentucky, South Carolina, Tennessee, and Texas - a significant action in the U.S. multifamily financing market this year. Newmark also arranged a $630 million refinancing for Miami’s 830 Brickell office tower, with the funding led by Goldman Sachs and J.P. Morgan. In another deal, the company facilitated a $415 million refinance for a retail portfolio in the Northeast on behalf of DRA Advisors and KPR Centers.
Separately, Citizens repeated its Market Outperform rating on Newmark and kept a $21.00 price target, citing the company’s recent hiring and market share gains in U.S. capital markets. Citizens emphasized Newmark’s scalable platform and the addition of producers as supportive of its positive evaluation, particularly in debt financing and alternative asset classes.
These analyst perspectives and the string of large financing transactions underscore Newmark’s active role in capital markets and refinancing activity, even as the stock recently experienced heightened volatility amid a broader selloff in the sector.