Credit Suisse Credit Suisse’s Andrew Kuske cut his Brookfield Corp. (BN-N, BN-T) target to US$41 from US$42 with an “outperform” rating. The average is $44.74.
“We updated forecasts for Brookfield Corporation (BN) following the Q2 2023 results and recent activities,” he said. “We maintain a positive bias towards much of the broader Brookfield Group that is under direct coverage. Naturally, given the ownership relationships, such positives cascade into BN at the “top of the house”. Ultimately, we continue to believe considerable option value exists in the BN stock and the market positioning is among the best witnessed in decades of Group coverage. On a more near-term basis, the fast-approaching September Investor Days look likely to provide positive reinforcement of underlying business dynamics and valuation views.
“On a self-stated basis, BN’s liquidity stood at US$120-billion at the end of Q2 and provides ample flexibility across the portfolio. As with other Group members, some market dislocations may enhance investment potential in a few verticals with the real estate bucket having positive Q2 conference call commentary. Moreover, we believe an acceleration of activity is somewhat likely across the Group.”