Canaccord analyst Mark Rothschild came out with some commentary on Brookfield Asset Management Inc (NYSE:BAM), after the Canadian asset management company released its second-quarter results last Friday. Additionally, the analyst reiterated a Buy rating on BAM, with a price target of $41, which represents a potential upside of 19% from where the stock is currently trading.
Rothschild wrote, “For Q2/15, Brookfield Asset Management reported funds from operations (FFO) per share (including gains) of $0.50, down 11% from $0.56 in the year-ago period. On the positive side, asset management fees continue to rise as BAM raises new funds and earns carried interest through harvesting existing funds. However, weak results from its residential and renewable energy division, and no cash flow from investment income more than offset this, and the company’s results were below expectations.”
“Going forward, fundamentals remain strong across all of BAM’s core business lines with the exception of residential in Brazil and Alberta. Therefore, we expect cash flow to rise consistently, led by growing asset management fees.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Rothschild has a total average return of -0.1% and a 36.4% success rate. Rothschild has a -1.1% average return when recommending BAM, and is ranked #2682 out of 3729 analysts.