Brookfield Asset Management's (BAM) plan to double fee-bearing capital to $1.3 trillion by 2031 supports its target for high-teens distributable earnings growth, RBC Capital Markets said in a Friday note.
Brookfield Asset Management expects fee-bearing capital to grow 14% annually through 2031, with credit, infrastructure and private equity among the largest contributors, the firm said.
RBC said the company's five year targets model 16% growth in fee-related earnings and 18% growth in distributable earnings.
The firm said four areas could drive potential upside to above 20%, including the 401(k) opportunity, new complementary funds, Partner Managers and further M&A.
RBC maintained its outperform rating on Brookfield Asset Management and a $65 price target.
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