Wells Fargo Lowers Price Target for Brookfield Asset Management Stock

Wells Fargo & Company has issued a new report indicating a reduction in the price target for Brookfield Asset Management (NYSE:BAM - Get Free Report) from $54.00 to $50.00. In their analysis, they have assigned an "underweight" rating to the company's stock. This adjustment suggests a modest potential upside of approximately 1.33% based on the stock's current trading price.

Analyst Ratings Overview

Furthermore, additional equities research analysts have provided their assessments of Brookfield Asset Management. Scotiabank recently lowered their price target from $63.00 to $62.50, while maintaining an "outperform" rating for the company. Meanwhile, HSBC upgraded Brookfield Asset Management from a "hold" rating to a "buy" rating. UBS Group also initiated coverage on the stock with a favorable "buy" rating. Additionally, CIBC has increased their target price for the company from $63.00 to $70.00 while continuing to rate the stock as "outperform." Overall, the stock has received a mixture of opinions: three analysts rated it as a sell, four indicated hold, eight issued buy ratings, and one provided a strong buy recommendation. According to data from MarketBeat, the consensus rating for Brookfield Asset Management stands at "Hold," with an average price target of $56.38.

Recent Stock Performance

On the trading day following the report, Brookfield Asset Management’s shares declined by 0.7%, closing at $49.35. The trading volume was approximately 1,002,994 shares, which was slightly below the average of 1,302,899 shares. The company holds a market capitalization of $21.87 billion, with a price-to-earnings ratio of 37.38. Over the past year, shares have fluctuated between a low of $37.29 and a high of $62.61. Currently, the stock's 50-day moving average stands at $55.36 and its 200-day moving average at $53.15.

Earnings Report

Brookfield Asset Management recently released its quarterly earnings results. For the latest quarter, the company reported earnings per share (EPS) of $0.40, which slightly surpassed analysts' expectations of $0.39. The firm's return on equity was notably high at 81.16%, and it registered a substantial net margin of 54.47%. Analysts predict that Brookfield Asset Management will achieve an EPS of 1.70 for the current fiscal year.

Institutional Ownership Overview

In terms of institutional activity, several hedge funds have altered their positions in Brookfield Asset Management recently. FMR LLC increased its holdings by 2.3%, owning a total of 19,646,285 shares, valued at approximately $1,064,983,000. Similarly, Vanguard Group Inc. raised its stake by 1.6%, now holding 16,901,942 shares worth $916,676,000. TD Asset Management reported an increase of 8.9% in holdings, now managing 16,664,426 shares valued at $903,323,000. Capital International Investors and FIL Ltd also expanded their positions in the fourth quarter. Overall, approximately 68.41% of the company’s shares are owned by institutional investors and hedge funds.

Company Profile

Brookfield Asset Management Ltd. operates as a prominent real estate investment firm that focuses on alternative asset management. The company is involved in various sectors, including renewable power, where it manages hydroelectric, wind, and solar energy assets, alongside its infrastructure business that addresses utilities and transport.

Wells, Fargo, Brookfield