JP Morgan raises target on Brookfield Asset Management(BAM-A:TSX) to $76

STA Research
by: STA Research

JP Morgan analyst Kenneth B. Worthington raises target on Brookfield Asset Management to $76, and maintained the Overweight rating on the stock.

Stocktargetadvisor has a average target of $63 and a consensus Buy rating on the stock.

STA Research’s analysis of the stock is Slightly Bearish with a score of 3.6 out of 10, where 0 is very bearish and 10 very bullish.

 

What to 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 to not like
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.
Poor return on equity
The company management has delivered below median return on equity 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.

 

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