Brookfield Asset Management: Mispricing With AI And Nuclear Tailwinds

Brookfield Asset Management remains a compelling GARP opportunity, offering a 4.4% yield and trading below its normal P/E average. BAM’s fee-related earnings growth is driven by robust fundraising and AI infrastructure tailwinds. Expanded partnerships, such as the $25B Bloom Energy deal and Westinghouse nuclear investments, position BAM for durable long-term growth. I maintain a 'Strong Buy' rating on BAM, citing balance sheet strength, fundraising momentum, and potential double-digit total returns.

Asset managers have come under pressure this year, as concerns around private credit have lingered over the space. This has created attractive valuations even on those who have less exposure to PC than peers.