Brookfield Ord Shs Class A T.BN

Target Raised

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Ahead of next week’s earnings release for both, Scotia Capital’s Mario Saric raised his targets for Brookfield Asset Management Ltd. to US$46.50 from US$42 and Brookfield Corp. to US$49 from US$46.25 with “sector outperform” recommendations for both. The averages are US$38.58 and US$43.76, respectively.

“Overall, we’re reiterating our positive thesis on both BN and BAM (BN prefered in soft landing and BAM in hard landing; slight preference for BN overall) after the Fed [Wednesday] afternoon (’buying the dip’ makes sense), while increasing our BAM and BN target price by 11 per cent and 6 per cent on higher perpetual FRE and the recent BLK-GIP deal,” he said. “One may think we’re “chasing the share price” on the surface but we still think BN is quite undervalued, while BAM’s PEG of 1.4 still looks attractive and our revised multiple is readily supported, in our view. Now we doubt another 35-40-per-cent upside (i.e., BN and BAM bounce from recent trough in late October) and the bar for further share price appreciation moves higher (and AEL deal closing could see BAM share supply), but 15-20 per cent remains an attractive risk-reward profile for 2024.”