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Investing.com - TD Cowen has reiterated its Buy rating on Brookfield Corporation (NYSE:BN) with a price target of $83.00, representing a potential return of approximately 25% from current levels. The company, currently valued at over $100 billion in market capitalization, is trading at $65.93 per share. According to InvestingPro data, this price represents a relatively high P/E multiple of 152.7x.
The firm noted that Brookfield’s share price has risen approximately 16% year-to-date, outperforming all of its subsidiaries except Brookfield Business Partners (NYSE:BBU), yet still appears undervalued based on its analysis. InvestingPro data shows even stronger performance over a longer timeframe, with a remarkable 45.11% return over the past year, and the stock is currently trading near its 52-week high of $68.75.
TD Cowen’s valuation uses a sum-of-the-parts net asset value (NAV) approach, suggesting the current stock price assigns only about $12.50 per share to Brookfield’s unlisted assets and unrealized carried interest, compared to their International Financial Reporting Standards (IFRS) value of approximately $23.00 per share. For deeper insights into Brookfield’s valuation metrics and 12 additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
The firm calculates these assets are worth approximately $17.00 per share when applying a 30% discount to the on-balance-sheet real estate portfolio, as reflected in their target NAV, indicating the stock currently assigns only about 75 cents on the dollar to these assets.
TD Cowen also noted potential upside of approximately $8.00-$13.00 (10%-16%) to their target price if taking a more favorable view on certain aspects of their NAV calculation, specifically regarding insurance, carried interest, and real estate.
In other recent news, Brookfield Corporation reported its second-quarter 2025 earnings, revealing a revenue surge to $18.08 billion, significantly surpassing the expected $1.4 billion. However, the company’s earnings per share (EPS) fell short of expectations, coming in at $0.80 compared to the forecasted $0.90. This represents an 11.11% miss in EPS estimates. Meanwhile, RBC Capital has raised its price target for Brookfield to $83, attributing the increase to solid quarterly results and identifying multiple catalysts for potential growth in distributable earnings and value per share. Goldman Sachs also initiated coverage on Brookfield with a Buy rating and a price target of $78, citing the company’s potential for significant capital generation and enhanced shareholder returns. Additionally, JPMorgan has increased its price target to $73, maintaining an Overweight rating and highlighting Brookfield’s strong position in infrastructure. These developments reflect a positive outlook from analysts despite the recent EPS miss.
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