Brookfield (BN) is "very well" positioned in the current environment due to its focus on "real" assets, including laying the backbone infrastructure for artificial intelligence, RBC Capital Markets analysts said in a Friday note.
Analysts said that Brookfield faces several positive catalysts that could boost distributable earnings, including growth in Brookfield Wealth Solutions, selling down opportunistic real estate assets, and continuing accretive share buybacks.
Brookfield on Thursday reported Q4 distributable earnings of $0.67 per share, higher than an RBC estimate of $0.62. Analysts said that Brookfield's beat was driven by higher distributable earnings from Real Estate, which was partially offset by lower realized carried interest.
RBC said that share buybacks are an accretive deployment of capital, considering that given Brookfield shares are trading at a discount to net asset value.
RBC retained an outperform rating on the Brookfield stock and increased its price target to $60 from $58.
Price: 48.13, Change: +0.46, Percent Change: +0.96
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