Brookfield Corporation (BN): A Bull Case Theory 

We came across a bullish thesis on Brookfield Corporation on Rijnberk InvestInsights’s Substack by Daan. In this article, we will summarize the bulls’ thesis on BN. Brookfield Corporation’s share was trading at $45.20 as of October 21st. BN’s trailing and forward P/E were 154.91 and 13.77 respectively according to Yahoo Finance.

Brookfield Corporation (BN), with a market cap of $104 billion, is a leading global owner and operator of real assets, spanning renewable energy, infrastructure, private credit, real estate, and insurance/retirement solutions. The company benefits from a dual engine: a high-quality, fee-generating asset manager via its majority stake in Brookfield Asset Management (BAM), and a long-term owner of critical, contracted assets. Its global footprint includes data centers, transmission networks, toll roads, pipelines, ports, and renewable farms, providing exposure to secular themes like decarbonization, AI infrastructure, and the global energy transition.

Brookfield’s renewable energy portfolio—hydro, wind, and solar—along with data centers and infrastructure projects in emerging markets like India, generates stable, inflation-linked cash flows while benefiting from long-term growth tailwinds. Under CEO Bruce Flatt, the company has delivered consistent value creation, compounding shareholder returns at double digits for decades, with 22% annualized returns over the past five years.

BN remains undercovered due to its structural complexity, yet its diversified assets—including listed affiliates, real estate, and Wealth & Retirement Solutions—provide recurring, inflation-protected cash flows. BAM, with over $540 billion in fee-bearing capital, represents the largest growth engine, expected to double fee-related earnings by 2029, with BN retaining a 73% stake. Brookfield’s financial position is exceptionally strong, producing ~$5 billion in distributable earnings annually, with robust balance sheet and recurring cash flow generation.

Management targets 25% annualized growth to $13.5 billion by 2029, implying a fair value per share of $140 by 2030, while current stock trades at a ~30% discount to SOTP. Even conservatively, the 2029 target price of $84 implies ~16% annualized returns from the current $43 price. Brookfield combines asset manager predictability, infrastructure inflation protection, and holding company optionality, making it a compelling, underappreciated global investment with significant upside.

Previously we covered a bullish thesis on Brookfield Corporation (BN) by 310 Value in April 2024, which highlighted its mispricing relative to peers, robust structure, and diversified distributable earnings. The company’s stock price has depreciated approximately by 11.37% since our coverage. The thesis still stands as Brookfield’s intrinsic value and cash flows remain strong. Daan | InvestInsights shares a similar perspective but emphasizes its global real assets and growth outlook.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.