Deutsche Bank Capital lowers the target price on Brookfield Asset Management Inc.(BAM-A:TSX) to $60

Deutsche Bank Capital maintains Brookfield Asset Management Inc. with a Hold rating and lowers the target price to $60 from $78 on the company’s stock.
Based on the Brookfield Asset Management Inc stock forecasts from 5 analysts, the average analyst target price for Brookfield Asset Management Inc is CAD 82.22 over the next 12 months. Brookfield Asset Management Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Brookfield Asset Management Inc is Bearish, which is based on 4 positive signals and 10 negative signals. At the last closing, Brookfield Asset Management Inc’s stock price was CAD 59.17. Brookfield Asset Management Inc’s stock price has changed by -6.32% over the past week, -13.05% over the past month and +9.01% over the last year.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
High volatility
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Poor return on equity
The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Highly leveraged
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.