01:29 PM EDT, 10/21/2024 (MT Newswires) -- RBC Capital has raised its target on Colliers International ( CIGI ) to US$174, from US$160, and reiterated its Outperform rating.

Analyst John Shan believes there would be an upside if Colliers International's ( CIGI ) Investment Management (IM) business were to spin off as a stand-alone public entity.

A spin-off could capitalize on high valuation multiples, writes Shan. IM's own spin-off from FirstService (FSV.TO) in 2015 saw subsequent significant value creation for shareholders in both entities.

A spin-off may not be in the cards just yet but Shan notes that on the fiscal second quarter call, CEO Jay Hennick indicated that all options are being considered but there's "no urgency."

Bottom line: "We think a spin-off has strategic merits and value-unlocking potential. Regardless of whether it occurs or not, we believe a higher value should be reflected in our valuation."

Price: 207.06, Change: -1.62, Percent Change: -0.78