BMO Capital analyst Sohrab Movahedi has maintained their bullish stance on BN stock, giving a Buy rating on May 10.
Sohrab Movahedi’s rating is based on the positive trends in Brookfield Corporation’s asset management and insurance sectors, which are expected to fuel consistent earnings growth over the year. Movahedi is particularly optimistic about the company’s scale growth in these areas. Additionally, the report highlights Brookfield’s strategic share repurchases, which have been occurring at a pace that surpasses previous full-year figures, and a notable decrease in the net asset value (NAV) discount, both of which are seen as positive indicators for the stock’s future performance.
The report also underscores Brookfield’s ability to distinguish its investment returns through a mix of growing cash flows, margin expansion, multiple expansion on exits, and financial leverage. In a changing economic environment where operating skills are increasingly important, Brookfield stands out. Moreover, Movahedi has increased the target price for Brookfield’s stock to $46, up from $44, due to a revised valuation methodology for insurance earnings, which reflects a stronger expected return on equity and the significant scale brought about by recent strategic moves in the insurance sector.
According to TipRanks, Movahedi is a 4-star analyst with an average return of 6.2% and a 54.37% success rate. Movahedi covers the Financial sector, focusing on stocks such as Bank Of Nova Scotia, Canadian Bank of Commerce, and Royal Bank Of Canada.
In another report released on May 10, Scotiabank also maintained a Buy rating on the stock with a $49.50 price target.
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Brookfield Corporation (BN) Company Description:
Canada-based Brookfield Asset Management, Inc. is a leading alternative asset management company, focusing on real estate, renewable power, infrastructure and private equity. The company manages a range of public and private investment products and services for institutional and retail clients.
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