Cohen & Steers Faces Sell Rating Amid Financial Weakness and Cost Pressures

Cohen & Steers has been given a Sell rating by analyst Craig Siegenthaler of Bank of America Securities due to weak financials, cost pressures, and challenges in fundraising for real estate. Despite potential growth in their active ETF lineup, the outlook remains challenging with anticipated softer inflows for 2026 likely to pressure fee-earning assets and revenue. The company's weak Q2 2025 results and increased guidance for general and administrative expenses also contributed to the Sell rating.

Cohen & Steers Inc. (CST) has been given a Sell rating by analyst Craig Siegenthaler of Bank of America Securities, reflecting the company's recent financial struggles and cost pressures. The rating, which reduces the price target to $66.00, highlights the challenges Cohen & Steers faces in its real estate investment operations and active ETF lineup.

The company reported weak financial results for the second quarter of 2025, with earnings per share (EPS) coming in below expectations. This was primarily driven by negative net flows, particularly from outflows in preferred securities, coupled with lower investment and administration fees. Additionally, unexpected increases in general and administrative expenses (G&A) have put further pressure on the company's bottom line.

Despite the potential for growth in their active ETF lineup, which is expected to expand in the latter half of 2025, the 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.

Strong investment performance and potential improvements in net flows and economic conditions could pose upside risks to this outlook, but the overall sentiment remains negative. Analysts have cited these factors as the primary reasons for the Sell rating, emphasizing the need for investors to be cautious.

For a comprehensive analysis, visit the Cohen & Steers Inc. (CST) Summary page.

References:
[1] https://www.tipranks.com/news/ratings/cohen-steers-faces-sell-rating-amid-weak-financials-and-cost-pressures-despite-potential-etf-growth-ratings