Cohen & Steers (CNS) shares have faced some pressure lately, with the stock slipping over the past quarter. Investors are now paying close attention to recent trends to gauge the company’s next move.
After a steady drop earlier in the year, Cohen & Steers’ momentum has continued to fade. The latest share price closed at $65.49, and the year-to-date share price return now sits at a challenging -28.32%. Looking at the bigger picture, the stock’s 1-year total shareholder return is down 32.44%, though investors with a longer-term view have still seen positive gains over three and five years.
But with shares now trading well below analyst targets and the company showing double-digit earnings growth, the big question is whether the stock represents a genuine bargain or if the market has already factored in all the upside.
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Most Popular Narrative: 9.5% Undervalued
Cohen & Steers’ latest consensus narrative suggests the shares are trading below fair value, even after several downward price target adjustments. With renewed focus on potential catalysts, the story behind this valuation is anything but ordinary.
“Strategic expansion into active ETFs and broader product diversification (including the launch of integrated listed/private real estate strategies) is expected to attract new investor segments and improve client retention, supporting future AUM growth and revenue stability. Recovery in real estate valuations, following several quarters of declines and evidence that real estate prices have bottomed, is likely to spur increased allocations from both institutional and retail investors seeking diversification and inflation protection, bolstering future revenue and AUM.”
Want to know the bold assumptions that set this price apart? This fair value is built on a combination of future margin expansion, a shift in global investment trends, and a surprising profit jump. Some forecasts might catch even seasoned market-watchers off guard. Find out which numbers tip the scales.
However, ongoing net outflows from clients and heightened expenses related to global expansion may undermine the growth and margin story that analysts are forecasting.
Looking at Cohen & Steers through the lens of valuation ratios, the company's price-to-earnings ratio stands at 20.3x. This is noticeably higher than the peer average of 11.6x and also above the fair ratio of 14.9x, which the market could eventually revert toward. While current earnings growth is solid, this premium means investors are paying up for expected performance. This raises the question: is the optimism warranted, or does it point to valuation risk?
If you think there’s more to the story or want to dig deeper into the numbers, you can craft your own analysis in just minutes: Do it your way
A great starting point for your Cohen & Steers research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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