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After shares of CBRE plunged earlier this month on worries artificial intelligence will upend the need for office space, UBS thinks the fears are overblown and is recommending investors buy the stock after the retreat. The Swiss bank upgraded the commercial real estate adviser to buy from neutral on Sunday, raising its 12-month price target by almost 6%, to $185 from $175. That implies 21% upside from Friday’s close, and would mean new record highs for the stock. CBRE tanked 20% in two days a couple of of weeks ago as AI disruption fears roiled the market. The concern is that AI will replace enough white-collar jobs that fewer office spaces filled with workers will be needed, ruining the office real estate market. Shares of CBRE are down almost 14% in February. CBRE 1M mountain CBRE 1-month chart. But UBS analyst Alex Kramm thinks CBRE can weather the AI storm. “While AI could have some impact over time, we believe CBRE is actually positioned to benefit given its strong industry position and vast data assets,” he wrote in the 28-page report. Kramm added that CBRE, once known as CB Richard Ellis and before that Coldwell Banker, should be insulated from AI disruptions due to the complicated nature of its work, along with how localized real estate is. UBS also thinks the company’s fundamentals look strong. In its latest quarterly report delivered earlier this month, CBRE gave strong guidance and indicated momentum from 2025 continued in the first six weeks of 2026. That outlook may not be reflected in the stock price, Kramm said. “We are raising our [earnings and revenue] estimates significantly, supported by strong industry trends and company guidance, which points to 14-19% y/y growth in FY26,” he wrote. “We think the stock is pricing in only ~7% medium-term revenue growth, leaving room for upside.”
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