Analyst Sees Buying Binge For Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. BIP's recent $850 million equity offering diluted its shares but is likely the prelude to an acquisition binge that may add to earnings, an analyst said Tuesday. RBC's Robert Kwan maintained an Outperform rating and $28 target on the partnership which was spun off in 2008 from Brookfield Asset Management Inc. BAM. The partnership, which currently has assets of about $16.95 billion, has said it may bid on assets up for sale in an Australian privatization plan affecting ports and power lines. Also in its sights: assets of troubled Brazilian construction companies and those of European utilities. In addition to the recent equity offering, 47 percent of which was acquired by Brookfield Asset Management, the company recently issued $125 million of preferred units and about $360 million of medium-term notes, according to Kwan. Further, there were more than $1.1 billion available in a corporate credit facility at the end of 2014, Kwan noted. Despite the dilutive affect of the recent equity sale, Kwan so far hasn't tinkered with his earnings forecast, pending what he figures are "imminent acquisition announcements." Up about 5 percent in the past month, Brookfield Infrastructure closed Tuesday at $44.63, up $0.07.