Scotiabank Has Lowered Expectations for Brookfield (NYSE:BN) Stock Price

Key Points

• Scotiabank cut its price target on Brookfield to $48.50 (from $52.00) while keeping a "sector outperform" rating, implying roughly a 21.6% upside from the recent share price of $39.89.
• Analyst consensus remains positive with a "Moderate Buy" consensus and an average price target of $54.20, based on one Strong Buy, ten Buy and two Hold ratings (range includes Morgan Stanley's $60 target).
• Large institutional investors have been accumulating shares—multiple funds significantly increased positions in Q4—and institutions now own about 61.60% of Brookfield's outstanding stock.

Brookfield (NYSE:BN - Get Free Report) had its target price reduced by analysts at Scotiabank from $52.00 to $48.50 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "sector outperform" rating on the stock. Scotiabank's price objective would suggest a potential upside of 21.58% from the company's current price.

BN has been the subject of a number of other reports. Morgan Stanley reaffirmed an "overweight" rating and set a $60.00 price objective on shares of Brookfield in a report on Tuesday, February 17th. Royal Bank Of Canada upped their target price on shares of Brookfield from $49.00 to $51.00 and gave the stock an "outperform" rating in a research report on Friday, February 13th. BMO Capital Markets raised their target price on shares of Brookfield from $49.00 to $51.00 and gave the company an "outperform" rating in a research note on Friday, February 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Brookfield in a report on Monday, December 29th. Finally, Keefe, Bruyette & Woods reiterated an "outperform" rating on shares of Brookfield in a research note on Monday, December 1st. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Brookfield currently has a consensus rating of "Moderate Buy" and an average price target of $54.20.

Brookfield Price Performance

Shares of Brookfield stock traded up $0.67 during trading hours on Wednesday, hitting $39.89. The company's stock had a trading volume of 349,864 shares, compared to its average volume of 5,872,087. The company has a market cap of $97.72 billion, a PE ratio of 80.90 and a beta of 1.58. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.21 and a current ratio of 1.32. The business has a 50 day moving average price of $44.38 and a two-hundred day moving average price of $45.36. Brookfield has a 12-month low of $29.07 and a 12-month high of $49.56.

Brookfield (NYSE:BN - Get Free Report) last released its earnings results on Thursday, February 12th. The company reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.06. Brookfield had a return on equity of 3.90% and a net margin of 1.74%.The firm had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.63 billion. Analysts expect that Brookfield will post 3.85 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Brookfield

A number of hedge funds have recently bought and sold shares of the business. Partners Value Investments L.P. lifted its holdings in shares of Brookfield by 50.0% in the 4th quarter. Partners Value Investments L.P. now owns 181,405,955 shares of the company's stock worth $8,324,719,000 after acquiring an additional 60,468,651 shares during the last quarter. Dodge & Cox purchased a new position in Brookfield during the 4th quarter worth $1,894,354,000. Royal Bank of Canada increased its stake in shares of Brookfield by 40.5% during the fourth quarter. Royal Bank of Canada now owns 113,652,306 shares of the company's stock valued at $5,215,504,000 after buying an additional 32,760,558 shares during the period. Vanguard Group Inc. increased its position in Brookfield by 52.1% during the 4th quarter. Vanguard Group Inc. now owns 92,103,120 shares of the company's stock valued at $4,228,915,000 after purchasing an additional 31,543,313 shares during the period. Finally, Capital World Investors raised its holdings in shares of Brookfield by 45.0% in the 4th quarter. Capital World Investors now owns 99,069,016 shares of the company's stock valued at $4,546,443,000 after purchasing an additional 30,755,354 shares in the last quarter. Hedge funds and other institutional investors own 61.60% of the company's stock.

About Brookfield

Brookfield Corporation NYSE: BN is a global alternative asset manager that specializes in real assets. The company invests in and operates businesses across real estate, infrastructure, renewable power and energy, private equity and credit. Its activities span both ownership and active management of physical assets as well as the operation of investment funds and vehicles that provide institutional and retail investors access to long‑lived, cash‑generating assets.

Brookfield's services include asset management, direct investing, property development and the operation of infrastructure and energy businesses.

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