Goldman Sachs Downgrades Cohen & Steers (CNS) to Sell, Cites Risk to Flows

September 12, 2012 7:13 AM EDT Send to a Friend
Get Alerts CNS Hot Sheet
Price: $42.89 -0.9%

Rating Summary:
    2 Buy, 1 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 38 | New: 6
Trade CNS Now!
Join SI Premium – FREE
Goldman Sachs downgraded Cohen & Steers (NYSE: CNS) from Neutral to Sell with a price target of $26.50 (from $31.00), suggesting 21% downside.

The firm cited: "(1) Significant deterioration in the firm's asset-weighted three-year performance record plus increasing competition from lower fee passive competitors
like Vanguard and iShares are likely to drive market share erosion in the US REIT space; (2) CNS’s Japanese sub-advised business (most of the $19 bn total sub-advised AUM), should see further flow deterioration after dividend cuts in several of those funds in 3Q12; and (3) valuation does not reflect softening fundamentals and the stock trades at a premium multiple relative."

Goldman raised 2012 EPS estimate to $1.58 from $1.56 on better market performance in 3Q12TD but lower 2013/2014 EPS to $1.67/$1.88 from $1.72/$2.01 on more conservative flow outlook.

For an analyst ratings summary and ratings history on Cohen & Steers click here. For more ratings news on Cohen & Steers click here.

Shares of Cohen & Steers closed at $33.71 yesterday.




You May Also Be Interested In


Related Categories

Analyst EPS Change, Analyst PT Change, Downgrades

Related Entities

Goldman Sachs, Dividend, Cohen and Steers, Vanguard

Add Your Comment