Market Overview

Credit Suisse Bullish On Brookfield Infrastructure

Share:
Credit Suisse Bullish On Brookfield Infrastructure

Credit Suisse has reinstated its coverage on Brookfield Infrastructure Partners L.P. (NYSE: BIP) with an Outperform rating and $59 target price, saying that Street underestimates the underlying organic growth from Brookfield's existing asset base along with increasing network benefits.

Apart from abundant M&A opportunities, the brokerage said the company's evolution is a much more visible organic growth profile coming from existing assets.

"This maturation lessens the need for M&A and highlights BIP's increasing network benefits that should provide greater financial and valuation clarity," analyst Andrew Kuske wrote in a note.

Related Link: It's Been 29 Days Since The S&P Moved 1%

The analyst expects Brookfield to generate double-digit FFO growth over the next three years, and projected FFO growth translates into an average of 10 percent distribution growth.

Kuske's $59 target price is obtained, in part, on a NAV along with an implied 4.0 percent distribution yield (200bps spread on an assumed 2.00 percent U.S. 10-year bond yield).

Units of Brookfield closed Monday's regular trading at $48.87. The $59 price target represents a potential upside of about 21 percent.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for BIP

DateFirmActionFromTo
Feb 2020DowngradesBuyHold
Dec 2019ReinstatesBuy
Sep 2019MaintainsEqual-Weight

View More Analyst Ratings for BIP
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Price Target Commodities Reiteration Markets Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (BIP)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
EQIXCFRAMaintains700.0
SPGCFRADowngrades120.0
EXPECFRAMaintains130.0
MATCFRAMaintains15.0
AEMCFRAMaintains90.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com