Back to top

To search, just start typing...



Please select which division you would like to log in to.

Investment Idea: Brookfield

0 shares 0 likes

Investment Idea: Brookfield

  • We recommend an underweight position for BAM US
  • The group’s plan to significantly develop retail property and land comes at a time where the real estate sector has seen significant downside following the spread of COVID-19 as businesses are forced to close their doors and people to stay inside.
  • Real estate constitutes about 25% of our intrinsic value and around 35% of group operating income; thus, a slowdown in real estate will have a material impact on earnings for the group.
  • The current price appears undervalued; however, we feel that that the near-term downside risks from COVID-19 on the real estate operations outweigh any potential near-term rerating towards the implied value per share.
Copyright © PSG Konsult Ltd (1998-2021), All Rights Reserved. FAIS affiliates of the PSG Konsult Group are authorised financial services providers.