Bank of America Raises PO on Cohen & Steers Following 1Q14 Results

In a report published Monday, Bank of America Merrill Lynch analyst Adam Beatty maintained an Underperform rating on

and raised the price objective from $34.00 to $36.00 following first quarter results. Cohen & Steers reported first quarter 2014 results on April 16 after the markets closed. The company reported first quarter EPS of $0.43 versus consensus estimate of $0.40 and Bank of America's $0.39 estimate. Revenue came in slightly below the $72.5 million consensus estimate at $72.8 million. Beatty forecasts higher revenue in the second quarter due to the additional day, AUM increase and milder outflows. The analyst continued, “we expect seasonally high G&A expenses to keep operating margin relatively depressed. Given mixed trends with lingering outflows but better performance, along with a $235mn sold backlog, we expect gradual improvement in outflows during 2014. CNS remains debt-free with ~$4/share in cash, and we expect continued regular and special dividends.” Shares of Cohen & Steers closed at $39.79 on Thursday and are currently trading at $39.34, down 1.14 percent.