Many investors have made a flight to safety in what seems like a never-ending sideways market.
Scotia Capital analyst Mario Sarich has identified a stock he thinks exhibits these qualities in spades.
As reported by The Globe and Mail on November 7, Saric raised his price target on Brookfield Asset Management (Brookfield Asset Management Stock Quote, Chart, News, Analysts, Financials TSX:BAM) by a dollar to (US) $37.50 while maintaining his “Sector Perform” rating on the stock. The analyst, who initiated coverage of the stock this past summer discussed his investment thesis in a research update to clients November 7.
“Overall, the positive thesis we discussed in our July 13th Initiation (BAM for the Buck… Take 2!) is very much intact,” he said. “We still see BAM as one of the most attractive dividend stocks in our coverage universe (4.2-per-cent divvy yield and 12.5-per-cent CAGR [compound annual growth rate] through 2025), capable of mid-teen per share KPI CAGR, at a very reasonable PEG ratio of 2.2, all without strategic M&A (likely be additive to said figures). All-in-all, quite a constructive outlook (particularly with potential peak interest rates). We look to any potential trading pressure (from AEL deal closing late in 2023; early 2024) as a good buying opportunity.”
Founded in 1899, Toronto-based Brookfield Asset Management has more than US$725 billion of assets under management, Brookfield Asset Management is a company that manages alternative assets, including real estate, renewable energy projects, infrastructure, and private equity.
BAM shares on the NYSE closed November 6 down $0.47 to $31.19.
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