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Colliers International Group Inc. Subordinate Voting Shares (CIGI)
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Altus Group Limited (AIF)
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CBRE Group Inc Class A (CBRE)
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AppFolio Inc. (APPF)
Q: Your comments please on recent M&A announcement to sell its global property tax business for $700M.
Do you like the sector right now? Please rank AIF, CIGI, APPF, CBRE in order of preference. Thanks!
Do you like the sector right now? Please rank AIF, CIGI, APPF, CBRE in order of preference. Thanks!
5i Research Answer:
We think the planned sale of its property tax business to Ryan, LLC for $700M is a net positive for the company. The divestiture can allow it to refocus on its higher-margin analytics business and help support its share price by paying down debt and conducting a buyback.
The names have some similarities, but have some differences in terms of growth profiles and valuation. For a high growth but premium valuation name, we like APPF, but the remaining names all demonstrate more similar growth profiles and valuation levels to each other. We would rank as follows: CBRE, AIF, and CIGI.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in APPF.