2023-04-18 10:36:15 ET
- Brookfield Asset Management ( NYSE: BAM ) was downgraded to Underperform from Market Perform at Keefe, Bruyette & Woods on limited upside potential as "already high" expectations are priced into the stock.
- Shares of the asset manager slipped 2.7% in morning trade.
- "We are downgrading BAM based on its full valuation and limited upside, given the high expectations baked into the stock currently," said analyst Michael Brown. "Given the industry-wide fundraising challenges, we are more cautious than the Street on BAM's near-term fee-bearing-capital growth."
- KBW prefers Outperform-rated Apollo Global Management ( APO ) and KKR ( KKR ), which have strong growth profiles yet discounted valuations.
- The research firm also lowered its price target on Brookfield ( BAM ) to $34 from $36, implying 2.6% potential upside to its last close.
- Seeking Alpha authors and Wall Street analysts on average rate the stock Buy.
- Read why SA contributor David Ksir believes now is a great time to invest in the asset-light and fast growing BAM.
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Brookfield Asset Management cut to Underperform at KBW on limited upside potential