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RBC Capital analyst Bart Dziarski assumed coverage on Brookfield Asset Management (NYSE:BAM) stock Wednesday with an Outperform rating and a price target of $72.00, up from the previous target of $68.00. The stock, which has delivered an impressive 47% return over the past year, is currently trading above its InvestingPro Fair Value.
The firm highlighted Brookfield’s position as one of the world’s largest alternative asset managers, with approximately $550 billion in fee-bearing capital under management. With a market capitalization of $88.5 billion and a robust financial health score rated as "GOOD" by InvestingPro, the company maintains a strong market presence.
RBC Capital believes Brookfield is positioned to benefit long-term from continued consolidation of general partner relationships by limited partners, a trend that typically favors larger alternative asset managers like BAM.
The analyst noted additional growth drivers including product proliferation as the company adds ancillary products to its flagship strategies, along with secular growth opportunities in both insurance and retail sectors.
RBC Capital views Brookfield’s five-year 17% distributable earnings compound annual growth rate target as attractive in the current market environment.
In other recent news, Brookfield Asset Management reported record earnings for the first quarter of 2025, with a 26% increase in fee-related earnings and a 20% rise in distributable earnings. The company raised $25 billion across its flagship strategies, marking significant growth in fee-bearing capital, which now stands at $549 billion. Additionally, Brookfield announced a major $10 billion investment to develop AI infrastructure in Sweden, aiming to establish a new AI center in Strängnäs. This initiative is expected to create over 1,000 permanent jobs and enhance Sweden’s national AI strategy.
Brookfield is also preparing to secure approximately $3 billion in debt financing, led by Morgan Stanley (NYSE:MS), for its acquisition of Colonial Enterprises, the operator of the Colonial Pipeline in the United States. This financing is expected to surface in the leveraged loan or bond market soon. Moreover, Brookfield’s strategic moves have included a €20 billion infrastructure investment program in France, highlighting its commitment to expanding AI infrastructure in Europe.
Analyst firms have also been active, with Brookfield’s robust earnings and strategic initiatives drawing attention. The company’s focus on expanding its global platform and diversifying investment strategies positions it for continued growth, as emphasized by executives during their recent earnings call. These developments underscore Brookfield’s strategic positioning in navigating complex market environments and leveraging opportunities for future growth.
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