CBRE's Case of the Mondays

CBRE Group’s $CBRE ( ▼ 1.93% ) stock plunged earlier this month as investors fretted that artificial intelligence could shrink demand for office space.

UBS $UBS ( ▼ 2.44% ) sees that selloff as excessive.

The firm upgraded the commercial real estate adviser to Buy from Neutral and raised its 12-month price target to $185 from $175. That implies roughly 28% upside and would mark new highs for the stock.

UBS analyst Alex Kramm argues that while AI could have some long-term impact, CBRE is positioned to benefit rather than suffer.

He cites the company’s strong industry position and vast data assets. Real estate transactions are complex and highly localized, factors UBS believes insulate CBRE from sweeping AI disruption.

In other words, AI may change office work. That does not mean it replaces the need for commercial real estate expertise.

UBS also pointed to solid operating momentum.

In its most recent quarterly report, CBRE delivered strong guidance and said trends from 2025 continued into the first six weeks of 2026.

Kramm raised his earnings and revenue estimates, noting company guidance that points to 14% to 19% year-over-year growth in fiscal 2026.

He believes the stock is pricing in only about 7% medium term revenue growth, leaving room for upside if results track closer to guidance.

If AI fears fade and growth holds, UBS thinks this pullback may prove to be a rare opportunity.