Goldman Sachs initiated coverage of Brookfield Corp with a Buy rating and a $78 price target, saying the Canadian alternative asset manager is set to generate more capital that could accelerate shareholder returns.
The analyst said Brookfield combines a diversified balance sheet with the investment expertise of its 73% stake in Brookfield Asset Management.
The broader Brookfield group oversees nearly $1 trillion of assets spanning real estate, infrastructure, renewable power, private equity, private credit and insurance.
Goldman expects Brookfield to enter a period of stronger excess capital generation, driven by improving cash flows in its real estate business, a rise in carried interest and performance fees, and steady insurance growth.
It estimated net capital generation of about $11 billion between 2025 and 2027, up from $3 billion over 2023-2024. At least half of that excess is likely to go toward share repurchases, in line with past practice, the bank said.
The firm’s distributable earnings per share are forecast to rise from $3.90 in 2025 to $5.73 in 2027, representing a 13% compound annual growth rate. Return on equity is expected to increase to 17% by 2027 from roughly 15% today.
Goldman said Brookfield’s stock trades at a discount to peers such as KKR and Apollo. It is valued at 14.5 times estimated 2026 earnings versus 20 times for rivals, and at 2.3 times price-to-book versus their 3.3 times.
The $78 target implies a multiple of 17.3 times 2026 earnings and 2.6 times price-to-book, Goldman added.
Source :
https://www.investing.com/news/stock-market-news/goldman-sachs-starts-brookfield-at-buy-sees-excess-capital-fueling-buybacks-4219371
