Shares of Brookfield Asset Management Inc. (BAM) declined 1.4% on Thursday after the alternative asset manager reported mixed Q2 results.
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Revenues soared 42.5% year-over-year to $18.3 billion and surpassed the consensus mark of $6.7 billion. The company benefitted from increased fee-bearing capital across both private fund and listed strategies.
Earnings came in at $0.49 per share against a net loss of $0.43 per share in the year-ago quarter. However, it lagged the Street’s estimates of $0.72 per share.
Inflows in the second quarter totaled $8 billion across several of the company’s perpetual and long-term fund strategies, as well as a first close of its latest real estate debt fund and further capital raised for Special Investments strategy. (See Brookfield stock charts on TipRanks)
The CFO of Brookfield, Nick Goodman, said, “Subsequent to quarter-end, we held the first close of $9 billion for our fourth flagship real estate fund, and our $7 billion founders’ close for our Global Transition Fund, taking total fundraising since last quarter to $24 billion. We expect the size of these two funds to exceed $30 billion before they close for capital.”
Prior to the announcement, Citigroup analyst William Katz initiated coverage on Brookfield with a Buy rating and a price target of $68 (upside potential of 20.3%).
Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Brookfield price target stands at $57.15, implying upside potential of 1.1%.
BAM scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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