Wells Fargo analyst Michael Brown reiterated a Sell rating on Brookfield Asset Management Ltd. Class A (BAM – Research Report) yesterday and set a price target of $54.00.
Michael Brown’s rating is based on the unique complexities and interconnectedness within Brookfield Asset Management Ltd. Class A, which contribute to lower-quality earnings streams. The recent negative headlines, although not directly impacting BAM, highlight the intricate relationships within the Brookfield empire, raising concerns about valuation approaches and the potential reputational risks that could affect fundraising and regulatory scrutiny.
Furthermore, despite the current trading at a high valuation multiple compared to peers, the potential for inclusion in the S&P 500 index seems more likely in 2026 rather than imminently. The intertwined nature of Brookfield’s entities, along with the possibility of Brookfield Corp reducing its stake in BAM, adds to the complexity and risk, which are seen as limiting factors on the stock’s valuation. Consequently, these factors underpin the Sell rating given by Michael Brown.
In another report released on February 18, KBW also maintained a Sell rating on the stock with a $56.00 price target.
BAM’s price has also changed moderately for the past six months – from C$55.370 to C$71.970, which is a 29.98% increase.