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Investing.com - Goldman Sachs initiated coverage on Brookfield Corporation (NYSE:BN) with a Buy rating and a price target of $78.00 on Tuesday. According to InvestingPro data, the stock is currently trading near its 52-week high of $68.75, having delivered an impressive 31.5% return over the past year.
The investment bank views Brookfield as a capital compounder poised for significant excess capital generation, which should lead to faster book value growth, higher return on equity, and increased share repurchase opportunities. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 1.67, indicating robust liquidity to support its growth initiatives.
Goldman Sachs projects Brookfield’s cumulative net capital generation will increase to approximately $11 billion between 2025 and 2027, up from about $3 billion in 2023-2024, with at least half of this excess capital expected to fund share repurchases.
The firm cited three key drivers supporting this outlook: improving cash flow dynamics in Brookfield’s Real Estate business, a step-up in carried interest and performance fees, and steady growth in the company’s insurance operations.
Goldman Sachs highlighted that Brookfield combines the scale and stability of a global, diversified asset portfolio with expertise from its 73% ownership in Brookfield Asset Management, with the broader Brookfield ecosystem overseeing nearly $1 trillion in assets across real estate, infrastructure, renewable energy, private equity, private credit, and insurance solutions.
In other recent news, Brookfield Corporation reported its earnings for the second quarter of 2025, revealing a significant revenue achievement of $18.08 billion, far surpassing the anticipated $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, marking an 11.11% miss. In light of these developments, RBC Capital raised its price target for Brookfield to $83 from $81, maintaining an Outperform rating and highlighting solid quarterly results and potential growth catalysts. Similarly, JPMorgan increased its price target for Brookfield to $73 from $70, citing the company’s strong fundraising outlook and its leading position in infrastructure. Both firms continue to hold favorable views on Brookfield, with JPMorgan maintaining an Overweight rating. These recent developments underscore Brookfield’s potential for growth, despite the EPS miss. Investors may find the increased price targets from major financial institutions noteworthy as they assess Brookfield’s future prospects.
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