Brookfield stock rating raised to outperform by RBC on growth outlook

Published 18/06/2025, 09:36
Brookfield stock rating raised to outperform by RBC on growth outlook

RBC Capital Markets raised its rating on Brookfield Corporation (NYSE:BN) to outperform on Wednesday, setting a new price target of $81.00, up from the previous target of $67.00. The new target represents significant upside from the current price of $57.98, though InvestingPro data shows the stock has already delivered an impressive 41% return over the past year.

The upgrade comes as analyst coverage of the company was assumed by RBC, which cited Brookfield’s long-term track record of compounding capital as a key factor in the decision. RBC described Brookfield as its "top idea" and suggested it should be considered a "core holding" for investors. This aligns with InvestingPro data showing Brookfield’s strong market position with an $88.5 billion market cap and a 29-year track record of consistent dividend payments.

RBC highlighted Brookfield’s substantial liquidity position, noting the company is well-positioned to deploy capital in the current market environment to drive future net asset value growth. This assessment is supported by InvestingPro metrics showing a healthy current ratio of 1.68, indicating strong ability to meet short-term obligations. The firm also pointed to Brookfield’s controlling stake in one of the world’s largest alternative asset managers as a contributor to potential value appreciation.

The investment bank expressed confidence that Brookfield is poised to benefit from increasing carried interest realizations and expansion of its Wealth Solutions business. These factors are expected to enhance the company’s growth trajectory in coming periods.

RBC concluded that Brookfield’s current valuation "provides an attractive entry point into a leading franchise," suggesting the stock may be undervalued relative to its growth prospects and market position.

In other recent news, Brookfield Corporation has submitted its Form 6-K to the U.S. Securities and Exchange Commission (SEC). This filing, made as a foreign private issuer, includes significant updates for the month of May 2025. The document features Exhibit 99.1, related to Proxy Class A Limited Voting Shares, and Exhibit 99.2, which contains the Notice of Annual and Special Meeting of Shareholders and Information Circular. These exhibits are set to be incorporated by reference into Brookfield’s registration statements on Form F-3, Form F-10, and Form S-8. The company has indicated plans to file annual reports under Form 40-F, a requirement for Canadian issuers in the U.S. market. The Form 6-K was signed by Swati Mandava, Corporate Secretary, confirming the company’s adherence to SEC reporting standards. This routine disclosure ensures transparency and provides investors with up-to-date information on Brookfield’s governance and shareholder matters.

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