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Cohen & Steers Initiated At Credit Suisse, Sees Organic Growth Through 2017

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Cohen & Steers Initiated At Credit Suisse, Sees Organic Growth Through 2017

Following the outperformance of Cohen & Steers, Inc. (NYSE: CNS) shares in 2016 to date, along with the stock’s higher relative valuation, Credit Suisse’s Ari Ghosh prefers to remain on the sidelines until there is a more attractive entry point into the stock.

Ghosh initiated coverage of Cohen & Steers with a Neutral rating and price target of $42.

Organic Growth

“While the combination of CNS's strong long-term fund performance and its in-favor product offering should generate positive organic growth through 2017, we actually expect CNS's organic growth rate to decline from current levels, which is tracking at +14 percent in 1H16,” the analyst mentioned.

In addition, Ghosh expects large AuUM/fund distribution to continue to offset robust inflows and weigh on total AUM growth for the company.

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Position Outside The U.S.

The company generates about 20 percent of its revenues from non-U.S. clients, with a strong presence in Japan, where it is key sub-advisor for Daiwa.

“A foothold in a large strategic, low interest rate market like Japan, where investors are starved for yield, should help drive flows into CNS's income-focused products,” Ghosh added.

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Latest Ratings for CNS

DateFirmActionFromTo
Apr 2019DowngradesBuyHold
Feb 2019DowngradesMarket PerformUnderperform
Jan 2019UpgradesUnderperformMarket Perform

View More Analyst Ratings for CNS
View the Latest Analyst Ratings

Posted-In: Ari Ghosh Credit SuisseAnalyst Color Price Target Initiation Analyst Ratings

 

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