Why Brookfield Asset Management Shares Are Rising Today

BMO Capital Market analyst Sohrab Movahedi raised its price target on Brookfield Asset Management Ltd BAM to $34 from $33 with a Market Perform rating.

The analyst is bullish on BAM's earnings growth prospects, given continued investor interest in its alternative asset strategies and the probable addition of perpetual assets worth around $50 billion from the American Equity Investment Life Holding AEL acquisition. 

The analyst believes BAM is on track to achieve record inflows of $150 billion in 2023, led by private fundraising of $100 billion and insurance capital inflows of $50 billion. 

Movahedi expects BAM's diversified asset classes to deliver continued fee-bearing capital growth in 2024/2025 as it raises the next round of flagship funds.

The analyst revised the distributable EPS estimates to $1.32 (from $1.40) for FY23 and $1.49 (from $1.56) for FY24. 

Yesterday, the company reported Q2 2023 revenues of $985 million which missed the consensus of $1.10 billion, and EPS of $0.28 missed the consensus of $0.32.  

Price Action: BAM shares are up 4.24% at $34.92 on the last check Thursday.