Is BIP a good stock to buy? We came across a bullish thesis on Brookfield Infrastructure Partners L.P. on Beat the TSX (BTSX-20)’s Substack by Beat the TSX-27 Strategy.. In this article, we will summarize the bulls’ thesis on BIP. Brookfield Infrastructure Partners L.P.’s share was trading at $36.25 as of April 16th. BIP’s trailing and forward P/E were 40.28 and 153.85 respectively according to Yahoo Finance.
Brookfield Infrastructure Partners L.P. engages in the utilities, transport, midstream, and data businesses. BIP delivered a steady Q4 2025 performance while signaling a meaningful inflection in growth ahead, reinforcing its positioning as a core infrastructure compounder with accelerating earnings visibility. Funds from operations (FFO) came in at $0.87 per unit, alongside a 6% increase in annual distributions to $1.82, extending its 17-year track record of consistent dividend growth.
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While recent results were supported by organic growth and acquisitions, partially offset by capital recycling, the key takeaway was forward-looking, with management guiding to 10%+ FFO growth in 2026 as new investments come online and data-driven capital deployment scales. This acceleration is underpinned by strong transaction momentum and increasing exposure to AI infrastructure, including 230MW of secured capacity with hyperscalers, highlighted by projects such as its partnership with Bloom Energy.
The strategy reflects a disciplined approach to growth, combining long-term, inflation-protected contracts with high-quality counterparties, while maintaining risk control through asset monetization and capital structure alignment. Capital recycling remains a core lever, demonstrated by a Brazilian transmission asset sale generating a 45% IRR, with proceeds redeployed into higher-growth opportunities. Despite these strengths, BIP trades below its historical valuation range at roughly 10x forward FFO with a ~5% yield, suggesting potential undervaluation.
With $2.7 billion in liquidity and resilient cash-generating retail, utilities, and data infrastructure assets, the company offers a compelling mix of income and growth. As earnings momentum builds and capital deployment accelerates, BIP appears well-positioned for a rerating, supported by durable cash flows and expanding exposure to structural growth themes.
Previously, we covered a bullish thesis on Quanta Services, Inc. (PWR) by Bulls On Parade in May 2025, which highlighted its role as a key infrastructure enabler of the AI-driven power buildout through grid modernization and data center construction exposure. PWR’s stock price has appreciated by approximately 100.90% since our coverage. Beat the TSX-27 Strategy shares a similar view but emphasizes Brookfield Infrastructure Partners (BIP) as a capital-heavy compounder leveraging contracted cash flows, capital recycling, and infrastructure yield rather than construction-driven earnings growth.
Brookfield Infrastructure Partners L.P. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held BIP at the end of the fourth quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of BIP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
