TD In research notes released Monday, two more companies were named to TD Cowen’s “Best Ideas 2025″ list.
Analyst Cherilyn Radbourne added Brookfield Corp. , calling it “good stewards of capital” and seeing “macro headwinds turning to tailwinds.”
“BN has a long track record of being a strong compounder of earnings/value, in our view,” she said. “The company owns 73 per cent of Brookfield Asset Management (BAM), which is targeting to compound DE [distributable earnings] at an 18-per-cent CAGR [compound annual growth rate] during 2024-2029 and is a global leader in renewables/transition/infrastructure investing, all areas of high growth and increasing LP allocations. BN’s wealth solutions business has grown to $115-billion-plus of AUM [assets under management] in just 2-3 years and is targeting $300-billion by 2029. Carried interest should be poised to inflect meaningfully higher in 2025-2027+, as deal velocity re-accelerates following a quiet two-year period.
“Investor sentiment regarding the on-balance-sheet real estate portfolio has bottomed and is on the upswing. In our view, there is still substantial unrecognized value in BN’s share price.”
Ms. Radbourne has a “buy” rating and US$74 target for Brookfield’s U.S.-listed shares. The average on the Street is US$63.24.
“BN’s franchise has been resilient over the past two years despite headwinds that are becoming tailwinds, as interest rates decline, and transaction velocity re-accelerates,” she added. “Q3/24 DE before realizations was a record $0.80/share, on a 23-per-cent increase in fee-bearing capital and a doubling of wealth solutions earnings. Realized carry will probably lag a bit but should re-accelerate in 2025-2027+.”