Analysts have upgraded Cohen & Steers to a Buy rating, citing a favorable 2026 outlook and a valuation that now fully reflects the firm’s improving fundamentals. Management forecasts that fee‐earning assets under management (AUM) will grow by 8% year‐over‐year, driven by inflows into both closed-end and open-end real estate and preferred income strategies. The upgrade follows three consecutive quarters of positive net inflows, reversing a year of modest outflows in the firm’s flagship vehicles.

Cohen & Steers’ fund lineup continues to deliver strong relative returns, with 95% of its funds outperforming their respective benchmarks across one‐, three‐ and five-year periods. The closed-end opportunity fund has generated a 12% total return over the past 12 months, while the preferred income fund posted a 9.5% return. Management attributes this outperformance to disciplined security selection and active duration management in a rising rate environment.

The firm’s balance sheet remains robust, with $403 million in cash and zero debt as of the latest quarter, providing flexibility for selective share repurchases or special dividend distributions. Cohen & Steers currently pays a 3.6% yield on its common shares, fully covered by distributable earnings, and management has signaled potential for a supplemental special payout later in the year should AUM growth exceed guidance.