Revised Target RBC’s Geoffrey Kwan cut his Brookfield Asset Management Inc. target to US$68 from US$72, reiterating an “outperform” rating, while BMO’s Sohrab Movahedi lowered his target to US$69 from US$71 with an “outperform” rating. The average is US$70.82.
“We have a positive view on Q1/22 results,” said Mr. Kwan. “While financial results (FRE, OFFO) were in line with our forecast, BAM confirmed plans to spin off its asset management business and indicated its fundraising outlook is very strong, which bodes well for future FRE growth. Our Outperform rating reflects our view that BAM offers an attractive mix of positive fundamentals; potential catalysts (e.g., asset manager spinoff, potential large monetizations, successful fundraising); and an attractive valuation (22-per-cent discount to NAV) ... We show buying BAM when it trades at a discount to NAV has been historically a good time to buy.”