Cohen & Steers stock initiated with Underperform rating by BofA

Investing.com - BofA Securities initiated coverage on asset manager Cohen & Steers (NYSE:CNS) with an Underperform rating and a $67.00 price target on Monday.

The investment bank cited several concerns about the company’s growth prospects, particularly noting expectations of low organic growth of 0-1% over the next three years after adjusting for reinvested distributions. InvestingPro data shows the company has maintained dividend payments for 22 consecutive years, with a current dividend yield of 3.18%.

BofA highlighted significant cyclical headwinds facing the real estate industry, which is partly driven by elevated interest rates, as a key factor in its cautious outlook on Cohen & Steers.

The analyst report also pointed to industry data showing redemption queues at Cohen & Steers’ peers, indicating broader concerns within the sector.

BofA noted that Cohen & Steers currently trades at 2.2 times the traditional asset manager peer group multiple, suggesting the stock may be overvalued relative to comparable companies.

In other recent news, Cohen & Steers reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.75, slightly above the forecast of $0.74. The company’s revenue reached $134.5 million, exceeding the anticipated $130.64 million, indicating strong financial performance. Furthermore, Cohen & Steers announced a cash dividend of $0.62 per share for the second quarter of 2025, payable on May 22, 2025. The firm also appointed Seth Laughlin as Senior Vice President and Head of Real Estate Strategy & Research, enhancing their focus on real estate investment opportunities. Additionally, Cohen & Steers expanded its leadership team by naming Brad Ispass as Head of Enterprise Wealth to lead the newly formed Enterprise Wealth Group. This strategic move aims to grow market share in core asset classes and expand into private assets and ETFs. The company continues to innovate with new investment products, including active ETFs, and has increased its Assets Under Management (AUM) to $87.6 billion. These developments reflect Cohen & Steers’ ongoing commitment to expanding its market presence and providing returns to shareholders.

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