BAM Stock Forecast & Price Target

Brookfield Asset Management is positioned for significant growth, anticipating the doubling of total assets under management (AUM) and earnings over the next five years, driven primarily by its strong credit segment, which accounts for 63% of the capital required to reach its 2029 target of $1.1 trillion in fee-bearing capital. The improving real estate market, characterized by lower interest rates and increasing transaction activity, further enhances Brookfield's prospects, leveraging the stability offered by private wealth investors. With a robust global presence and the backing of Brookfield Corporation, which owns a majority of its shares, the firm is strategically poised to capitalize on emerging opportunities within the alternative-asset management space.

Brookfield Asset Management is facing a challenging fundraising environment and a slowdown in deployment activity, which may adversely affect its overall revenue generation. Additionally, deteriorating investment performance has led to lower portfolio marks, which directly impacts the company's carried interest, and a compression in its forward earnings multiple to 20x, compounded by recent contractions among peers. These factors together contribute to a negative outlook, as the unrealized carry has also been marked down significantly by 50%, indicating potential future financial strain.