UPDATE: Goldman Sachs Downgrades Cohen & Steers to Sell on Sector Challenges

Goldman Sachs lowered its rating on Cohen & Steers

from Hold to Buy and reduced its price target from $31 to $26.50. Goldman Sachs noted, "We believe CNS shares will underperform (both absolute and relative) as investors contemplate: (1) growing “indexation” of real estate mutual funds amid gains from ETFs; (2) slipping 3-year performance numbers and slower open-end mutual fund flows; (3) recent dividend cuts in Japanese sub-advised funds driving outflows and an adverse fee mix shift. Still, CNS trades at 20X NTM P/E, a significant premium to the group's 14X, and we see 21% downside." Cohen & Steers closed at $33.71 on Tuesday.