Analyst Craig Siegenthaler of Bank of America Securities reiterated a Sell rating on Cohen & Steers, reducing the price target to $66.00.
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Craig Siegenthaler has given his Sell rating due to a combination of factors impacting Cohen & Steers. The company reported weak financial results for the second quarter of 2025, highlighted by negative net flows primarily from outflows in preferred securities. This resulted in earnings per share (EPS) coming in below expectations, coupled with lower investment and administration fees and unexpectedly high general and administrative expenses. Additionally, management has increased the guidance for G&A growth, indicating further cost pressures.
Despite the potential for growth in their active ETF lineup, which is expected to expand in the latter half of 2025, the overall outlook remains challenging. The anticipated softer inflows for 2026 are likely to pressure fee-earning assets under management and revenue, leading to a reduction in long-term EPS estimates and a decrease in the price objective. Continued fundraising difficulties in real estate, along with concerns about slowing US GDP growth and high interest rates, further support the Sell rating. However, strong investment performance and potential improvements in net flows and economic conditions could pose upside risks to this outlook.