Sell Rating Maintained for Cohen & Steers Amid Redemption Concerns and Real Estate Challenges
Craig Siegenthaler maintains a Sell rating for Cohen & Steers due to concerns over elevated redemptions and challenges in the real estate sector. Despite positive Q3 2025 financial results, the growing unfunded pipeline and anticipated gradual fund inflows may delay benefits. High-interest rates continue to pose challenges, and while investment performance is strong, the elevated compensation ratio and potential for high redemptions are ongoing issues. The price objective is slightly above the current market price, but the limited total potential return supports the underperform rating.
Craig Siegenthaler has given his Sell rating due to a combination of factors impacting Cohen & Steers. Despite the company’s positive financial results in the third quarter of 2025, including an earnings per share beat, there are significant concerns about the elevated redemptions and the challenges faced in the real estate sector. The company’s unfunded pipeline is growing, but the inflow of these funds is expected to be gradual, with most occurring in the first half of 2026, which could delay potential benefits.
Furthermore, while rate cuts are anticipated to aid flows into various strategies, high-interest rates remain a headwind until further cuts occur. Although Cohen & Steers has shown strong investment performance, the elevated compensation ratio and the potential for continued high redemptions present ongoing challenges. The company’s price objective is slightly above the current market price, but the total potential return is limited, leading to the underperform rating being maintained.
