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Investing.com - RBC Capital has reiterated an Outperform rating on Brookfield Asset Management (NYSE:BAM), currently trading at $55.68, with a price target of $74.00, citing expectations for high-teens earnings growth with potential upside exceeding 20%. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period, reinforcing the positive outlook.
The investment firm highlighted details from BAM’s recent Investor Day, where the company outlined plans to double its fee-bearing capital to $1.2 trillion by 2030, which should drive high-teens growth in fee-related earnings and distributable earnings. The company has demonstrated strong execution capability, with revenue growing at 13.8% over the last twelve months.
With BAM maintaining a 95% payout ratio, RBC Capital notes that dividends should also grow at a high-teens rate, potentially delivering a 21% internal rate of return to shareholders over time if the growth plan executes successfully. The company currently offers a 3.14% dividend yield, with dividend growth of 15.1% over the last twelve months.
The asset manager’s growth strategy includes targeting various fundraising channels and offering a broad range of investment strategies and products, with early opportunities identified in mid-market, corporate pensions, family capital, and European markets.
RBC Capital also pointed to BAM’s retail channel as a significant growth driver, noting it represents an estimated total addressable market of $40 trillion globally—approximately twice the size of the institutional channel—with credit expected to be the primary driver of growth through Brookfield Wealth Solutions.
In other recent news, Brookfield Asset Management has priced a public offering of $750 million in senior notes due 2055, bearing an interest rate of 6.077% per annum. This move is intended to support general corporate purposes. Piper Sandler has adjusted its price target for Brookfield Asset Management to $60.00 from $65.00, maintaining a Neutral rating. Meanwhile, BofA Securities has downgraded Brookfield Asset Management from Buy to Neutral, setting a price target of $68.00, citing concerns about the company’s positioning in U.S. retail and 401k themes and its current premium valuation.
Conversely, BMO Capital has raised its price target for Brookfield Asset Management to $56.00 from $53.00, while keeping a Market Perform rating, highlighting the company’s strong fundamentals and growth in fee-bearing capital. Additionally, Brookfield Asset Management’s executive David Levi met with China’s vice commerce minister, Ling Ji, who encouraged the company to establish renewable energy funds and invest in China. These developments reflect a mix of strategic financial activities and international engagement for Brookfield Asset Management.
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