Upgrade Saying the “middle-innings economy looks good” for Brookfield Asset Management Inc. , Scotia Capital’s Mario Saric raised his target to US$70 from US$67 with a “sector outperform” rating. The average is US$66.71.
“Historically, we have highlighted BAM outperforms the S&P and U.S. Financials during flattening yield curves (Scotia Economics 2022 estimate = 30 basis points of it) with 58-per-cent and 100-per-cent frequency,” he said. “New analysis in this report shows BAM’s periods of highest outperformance (again vs. S&P and U.S. Financials) is during periods of Decelerating Real GDP and Core Inflation (check and check), rising nominal and real yields (check and check). Also, we show BAM’s outperformance is better at a 2-5-per-cent US10YR Treasury vs. sub-2 per cent (again, check). Bottom-line, BAM is an attractive mid-to-later cycle economic play, which we think fits 2022 nicely.”