CA - Brookfield Infrastructure: This Is A Fat Pitch; Don't Believe The Shorts
2024-01-29 06:50:51 ET
Summary
- Brookfield Infrastructure Partners has a very strong pipeline to fuel AFFO growth, driven by an explosion in data center related demand.
- Valuations are attractive as the company trades below decadal averages for its 1-yr fwd P/AFFO multiples.
- Technical analysis of BIP vs. the S&P 500 suggests a bullish V-shaped reversal in the making, implying alpha potential ahead vs. the S&P 500.
- The market has spoken loud and clear that it does not believe in the recent 78-page short report as the market has bottomed since then, there has been no spike in short interest and none of Wall St has a sell rating on the stock.
- I defer to the market's intelligence in the analysis of the short report as I practically believe it is highly unlikely that I would be able to come to a different conclusion refuting the market's disbelief in the short report. Instead, risk is managed via prudent position sizing.
Thesis
I am bullish on Brookfield Infrastructure Partners ( BIP ) ( BIP.UN:CA ) for 3 simple but compelling reasons:...
Brookfield Infrastructure: This Is A Fat Pitch; Don't Believe The Shorts