http://www.tsxcommentary.com Canadian Market Commentary Fri, 26 Feb 2010 15:46:00 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 http://www.tsxcommentary.com/2009/firstservice/improved-results-into-2010/ http://www.tsxcommentary.com/2009/firstservice/improved-results-into-2010/#comments Mon, 23 Nov 2009 17:50:46 +0000 admin http://www.tsxcommentary.com/?p=300 Following management update, RBC CM revised its estimates post Q3 and debenture issue. CRE remains a difficult market with Q3 global investment sales down 19% YoY, leasing down 10% and appraisal down 23%. The transaction side remains very soft, impacted by limited credit and impasse on valuation between buyers and sellers. On leasing, as long as companies are downsizing, this market should continue to be soft as well, likely for next year or so. Catalyst for CRE transactions may well be banks/lenders calling loans and foreclosing on properties, forcing into sale. This would lead to increased number of transactions, but would also result in pricing pressure. RBC CM expects a gradual volume pickup following Q4. RBC CM expects FAS will continue to drive solid results, offsetting weakness in the Franchise business. With two out of three divisions performing well and its belief that CRE market is bottoming for FSV, RBC CM sees FSV well-positioned into F10. Post its convertible issue, RBC CM sees FSV open to acquisition opportunities for growth as well. Given recent share price pullback, RBC CM now rates FirstService Outperform, Average Risk, versus Sector Perform, Average Risk previously.

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