Cohen & Steers Earnings: Operating Results Won't Improve Until Rates Fall and Flows Improve
There was little in narrow-moat Cohen Steers' second-quarter results that would alter our long-term view of the firm. We expect to leave our $65 per share fair value estimate in place. We view shares as overvalued right now, trading at 1.25 times our fair value estimate and 29.5 times trailing four-quarters adjusted earnings of $2.76 per share. For some perspective, during the past five (10) years, the firm's shares have traded at an average of 22.3 (21.9) times trailing earnings on an adjusted basis, with the highest (lowest) multiple during the past decade being 29.8 (14.3) times.