Bank of America Securities raised its rating on Brookfield Asset Management (NYSE:BAM) from Neutral to Buy, setting a new price target of $65. The firm sees the stock as a compelling opportunity, backed by powerful secular trends and upcoming catalysts.
Analysts highlighted Brookfield’s leadership in infrastructure—a sector increasingly favored amid global investment shifts—and its growing presence in insurance, which is drawing comparisons to Apollo’s successful model. These strengths are expected to drive long-term value, particularly as institutional and private wealth capital continues flowing into alternative assets.
BofA also sees Brookfield’s fee-related earnings (FRE) as a resilient and defensive component of its financial profile, one that is currently underappreciated by the market. The firm points to potential upside in the near term, with anticipated earnings beats in the first and second quarters of 2025 and possible index inclusions that could boost investor interest.
Overall, the bank views BAM as well-positioned to capitalize on consolidation trends, growing demand for alternative investments, and its strong operating model across key asset classes.