Brookfield Corporation Projects 25% Annual Earnings Growth Over Next Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Investment Theme Intersection: Brookfield Corporation sits at the intersection of several high-conviction investment themes, projecting robust returns in the coming years, particularly in alternative asset management and wealth solutions.
- AI Infrastructure Investment: The company estimates that total spending on AI-related infrastructure will exceed $7 trillion over the next decade and has launched a $100 billion AI infrastructure fund, showcasing its forward-looking positioning in this area.
- Earnings Growth Potential: Brookfield's core businesses are expected to grow distributable earnings at a 20% annualized rate over the next five years, and with its capital allocation strategy, the annual earnings-per-share growth rate could rise to 25%.
- Shareholder Return History: Over the past three decades, Brookfield has delivered a 19% annualized total return, significantly outperforming the S&P 500's 11%, and is positioned to continue providing similar or higher returns in the next five years.
Analyst Views on BN
Wall Street analysts forecast BN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BN is 49.91 USD with a low forecast of 36.00 USD and a high forecast of 59.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 46.600
Low
36.00
Averages
49.91
High
59.00
Current: 46.600
Low
36.00
Averages
49.91
High
59.00
About BN
Brookfield Corporation is a Canada-based global investment firm focused on building long-term wealth for institutions and individuals around the world. The Company has three core businesses: Alternative Asset Management, Wealth Solutions, and its Operating Businesses, which are in renewable power, infrastructure, business and industrial services, and real estate. Its Asset Management business includes managing long-term private funds, perpetual strategies and liquid strategies on behalf of its investors and itself. The Company's Wealth Solutions business includes its equity accounted interest in Brookfield Wealth Solutions Ltd. Its renewable power and transition business includes the ownership, operation and development of hydroelectric, wind, utility-scale solar power generating assets, distributed energy, and sustainable solutions. The Company’s infrastructure business includes the ownership, operation and development of utilities, transport, midstream, and data assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
