Jones Lang LaSalle (JLL) continues to diversify globally, mainly through acquisitions. More and more of the company's business is overseas, which helps diversify the company's revenue base and will enable JLL to grow earnings as commercial real estate fundamentals deteriorate in the US.

The company recently announced a deal to acquire the Staubach Company for $613 million. We like this deal, as it will give JLL a stronger presence in tenant rep, which will hold up better as the company's Capital Markets business declines.

We are changing our near term recommendation to Hold due to the current state of commercial real estate in the US and Europe. A weakening global economy and problems in the credit markets will continue to hamper transaction volumes throughout 2008.

We have lowered our full year EPS estimates to $6.50 per share, down from $7.30 previously. The company is now trading at 9.5x our 2008 EPS and 7.5x our 2008 EBITDA projections. Based on EPS and EBITDA/share projections, the company is trading at a discount to peers. We are setting our price target at $62.00 per share or 9.5x 2008 EPS estimates.