Is Newmark Group (NMRK) Undervalued On Its Havas Health Leasing Win?

Why Newmark Group’s latest leasing win matters for investors

Newmark Group (NMRK) just represented Havas Health in a 254,118 square foot headquarters expansion and long term lease extension at 200 Madison Avenue in Midtown Manhattan, a high profile commercial real estate mandate.

Newmark Group’s share price has fallen 14.0% over the past month and is down 17.9% year to date, even though the 3 year total shareholder return is more than double. This suggests longer term holders have seen a very different journey from recent momentum.

See how Newmark Group compares with other commercial real estate plays on our hand picked list of list of solid balance sheet and fundamentals (23 results)

Newmark Group is being pulled between a falling share price and advancing client wins like the Havas Health mandate. Is that slide mostly about the business, or has sentiment simply swung too far on valuation?

Most Popular Narrative: 29% Undervalued

Newmark Group’s most followed valuation storyline puts fair value near $19.58 per share, compared with a last close of $13.94. This frames the recent leasing win inside a wider gap between market price and narrative expectations.

Analysts are assuming Newmark Group's revenue will grow by 9.3% annually over the next 3 years. Analysts assume that profit margins will increase from 4.3% today to 5.8% in 3 years time.

See why 7 investors see Newmark Group as 29% undervalued.

Result: Fair Value of $19.58 (UNDERVALUED)

Still, the narrative around Newmark Group can change if expansion into Europe and Asia reduces profitability or if weaker capital markets activity lowers high margin deal volumes.

Find out about the key risks to this Newmark Group narrative.

Next Steps

Mixed sentiment around Newmark Group is clear, so treat this as your cue to move quickly. Review the numbers yourself and weigh both sides using 4 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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