Why Brookfield Asset Management Shares Are Rising Today
Portfolio Pulse from Lekha Gupta
BMO Capital Market analyst Sohrab Movahedi has raised the price target for Brookfield Asset Management Ltd (BAM) to $34 from $33, maintaining a Market Perform rating. The analyst is optimistic about BAM's earnings growth due to continued investor interest in its alternative asset strategies and the potential addition of $50 billion in perpetual assets from the American Equity Investment Life Holding (AEL) acquisition. Despite missing Q2 2023 revenue and EPS consensus, BAM shares are up 4.24%.
August 10, 2023 | 5:26 pm
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POSITIVE IMPACT
Brookfield Asset Management's price target has been raised by BMO Capital Market analyst, citing earnings growth prospects and potential asset addition from AEL acquisition. Despite missing Q2 2023 revenue and EPS consensus, BAM shares are up 4.24%.
The raised price target and the analyst's bullish outlook on BAM's earnings growth, driven by continued investor interest and potential asset addition from the AEL acquisition, are positive signals for the company. Despite missing Q2 2023 revenue and EPS consensus, the stock price is rising, indicating investor confidence in the company's future performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
American Equity Investment Life Holding's (AEL) acquisition by Brookfield Asset Management (BAM) is expected to add around $50 billion in perpetual assets to BAM.
The news of AEL's acquisition by BAM is mentioned in the context of BAM's future growth prospects. While this is a significant development for BAM, the direct impact on AEL is not explicitly stated in the news. Therefore, the short-term impact on AEL's stock price is neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50