SAN FRANCISCO-For the second quarter the property services industry saw higher-than-expected leasing commissions, good investment sales activity and stable performances from property and asset management according to an equity research report from the Montgomery Division of Banc of America Securities. Average second quarter revenues for the five companies in its coverage universe topped estimates by 15% and last year’s results by 31%. Service EBITDA exceeded estimates by an average 29% and numbers from previous years by an average 122%.

Insignia Financial is the firm’s top pick. Trading at $9.50, its 12-month target price for the stock is $20. It currently trades at a 2000 estimated enterprise value/EBITDA multiple of just 1.9x, versus the sector at 3.6x. If Insignia’s multiple matched that of its peers, its stock would be at $16 now, the report says.

Trammel Crow, the other top pick, has run up 24% since March 31 and now trades at an enterprise value/EBITA multiple of 4.8x. It now trades at $14.59 Banc of America’s 12-month target price is $19.

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