Brookfield Asset Management price target raised to $62 by Morgan Stanley

Published 13/10/2025, 10:44
Brookfield Asset Management price target raised to $62 by Morgan Stanley

Investing.com - Morgan Stanley maintained its Equalweight rating on Brookfield Asset Management (NYSE:BAM) while raising its price target to $62.00 from $59.00. According to InvestingPro data, the stock currently trades at a P/E ratio of 38.7x and has shown notable volatility, with a beta of 1.57.

The firm revised its earnings per share estimates, reducing its third-quarter projection by 8% to 42 cents. Morgan Stanley also adjusted its 2025 and 2026 estimates downward by 5% each to $1.55 and $1.72 respectively, while increasing its 2027 estimate by 1% to $2.08. InvestingPro analysis reveals that 5 analysts have recently revised their earnings downwards for the upcoming period.

Morgan Stanley described Brookfield as a "best-in-class private markets franchise with significant brand power and unique fundraising channels" positioned to deliver above-industry growth. The firm noted Brookfield should benefit from secular growth across private markets, particularly in infrastructure, private credit, private wealth, and insurance customers. This outlook is supported by the company’s robust revenue growth of 13.8% over the last twelve months and impressive gross profit margin of 71%.

The stock currently trades at a "meaningful premium to peers" with a 96% fee-related earnings mix, despite having in-line fee-bearing capital growth expectations of 16% for 2025-2027, according to the analysis.

Morgan Stanley highlighted Brookfield’s differentiated access to the Brookfield ecosystem as providing a large source of permanent capital, which strengthens growth prospects for scaling new and existing strategies through Brookfield’s direct capital support across fund investments, insurance assets, and public vehicles.

In other recent news, Brookfield Asset Management has announced the dissolution of its toll roads subsidiary, Rutas de Lima, due to a significant revenue decline of over 60%. Despite this decision, the company will continue operating the roads temporarily. In another development, Brookfield has partnered with Figure, a humanoid robotics company, to create a large-scale humanoid pretraining dataset using video data from Brookfield’s extensive real estate holdings. On the financial front, Brookfield has successfully priced a $750 million public offering of senior notes due in 2055, with an interest rate of 6.077% per annum, to support general corporate purposes.

Analyst insights reveal that RBC Capital has maintained an Outperform rating on Brookfield, projecting high-teens earnings growth and the potential for over 20% upside. This optimism is partly based on Brookfield’s strategic plan to double its fee-bearing capital to $1.2 trillion by 2030. Conversely, Piper Sandler has lowered its price target for Brookfield to $60 while maintaining a Neutral rating, following presentations from company executives at a recent investor day. These developments collectively paint a picture of Brookfield’s current strategic and financial maneuvers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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