11:20 AM EDT, 07/29/2025 (MT Newswires) -- National Bank of Canada started coverage of Brookfield (BN.TO) and Brookfield Asset Management ( BAM ) with outperform ratings.

The bank said BN benefits from the earnings growth of its units and disposition gains on its principal investments. It believes BN, with a $82 price target, merits a premium to historical trading multiples as it believes the growth in the Wealth Solutions segment creates a more diverse and resilient earnings profile.

"In addition, we believe lower/stabilizing interest rates could drive an increase in the trading multiple as the outlook for monetization shifts more favourably and concerns in rate-sensitive segments ease," said analyst Jaeme Gloyn. "Further, we believe BN's positioning in high-growth sectors (e.g., private credit, infrastructure and renewable energy) provide a tailwind for growth and earnings quality, important for future multiple expansion."

In regard to Brookfield Asset Management ( BAM ), National Bank believes it benefits from management fees, performance fees and carried interest on its managed funds. It thinks BAM, with a $71 price target, "better fits" investors looking for a pure-play asset manager with healthy earnings compounding and a greater focus on income.

"We believe BAM merits a premium valuation given the high-quality, diverse and perpetual nature of the earnings stream, a strong growth outlook, fee-related earnings margin expansion and a capital-light business model," said Gloyn.

Price: 85.74, Change: -0.64, Percent Change: -0.74