The Globe and Mail reports in its Tuesday, April 8, edition that Scotia Capital analyst Mario Saric reduced his share targets for Brookfield Asset Management
to $58 from $62.50 and Brookfield to $68 from $71 with "sector outperform" recommendations for both. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target Brookfield Asset and Brookfield shares at $58.22 and $67.71. Mr. Saric says in a note: "There were very few places to hide last week, with Brookfield no different. ... As hard as it may be to believe in isolation, BAM and BN held in relatively well vs. U.S. peers, albeit lagging both the S&P and TSX, on what we believe was mostly multiple compression (we don't see 15-per-cent earnings downside)it is admittedly early days in the new global tariff world and multiples may exhibit volatility (BAM is already down 20 per cent since Q4 results), particularly should credit sentiment see further meaningful erosion. That said, we remain confident in BAM and BN structural mid-teen per share growth profile (perhaps helped by lower rates), which should generate similar share total returns over time as BN has rarely traded at a 39-per-cent discount to forward NAV like today."
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