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A Canadian Gem Worth a Look By TipRanks


© Reuters. BAM Stock: A Canadian Gem Worth a Look

Brookfield Asset Management (BAM) is one of those Canadian stocks that can offer you a better bang for your buck.

Alternative asset manager based in Toronto offers investors exposure to many alternative assets, including real estate, renewable energy, infrastructure and other income-producing assets. Many of these assets offer a higher return than common stocks and are low-correlated.

Brookfield has a wide range of alternatives investments that are attractive, as bonds and other less risky securities will likely remain inaccessible for many years.

BAM shares have risen 70% in the last year. BAM shares are up 70% despite the current momentum and high valuation. I remain bullish on this name and do not see any reason for BAM stock to lose a significant portion of the gains it has made in recent years. (See BAM stock charts on TipRanks)

Brookfield’s Investor Day

Recently, Brookfield had its annual Investor Day, laying out a plan to double in size over the next five years. Such a remarkable plan for an $87.4-billion business is rare.

Investors could earn more than 20% annually if the company follows through with its plans. BAM has the edge, considering that there is still a chance of the market tilting in the favor of other asset managers operating in low-rate environments.

Brookfield could reach its goals sooner than expected if all the cards are in place. At these low valuations the stock might be worth the trip north.

Brookfield has announced that it formed a strategic partnership worth $1 billion with Elion Partners. BAM will be closer to achieving its ambitious five year goal with this deal.

Wall Street’s Take

According to TipRanks’ analyst rating consensus, BAM stock comes in as a Strong Buy. Six Buy recommendations and one Hold recommendation are found in the seven analysts ratings.

The average BAM price target is $62.05. The average analyst price target ranges from $48.36 per shares to $71 per share.

Bottom Line

There’s a lot of appeal in real assets. There are strong arguments for investing in real assets, especially when bonds can earn almost nothing.

Disclosure: Joey Frenette does not own any shares in the companies mentioned at time of publication.

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