Pershing Square Capital Management, L.P. on Brookfield Corporation
Thesis
BN is a leading alternative asset manager with high-quality, growing cash flows, trading at a significant discount. Its earnings growth is poised to accelerate to ~25%+ due to increased carried interest and the scaling of its Wealth Solutions business. Management is targeting nearly $7 of EPS in 2030, yet the company's valuation of ~11x earnings remains a discount to our estimate of intrinsic value.
“Leading alternative asset manager with high-quality and rapidly growing cash flows trading at a significant discount to intrinsic value... Near-term outlook supports acceleration to ~25%+ earnings growth... Management targeting nearly $7 of earnings-per-share in 2030, or ~25% compounded... BN’s valuation of ~11x earnings remains a discount to our estimate of intrinsic value and comparable US-peers”