Brookfield Corporation (BN): A Bull Case Theory

We came across a bullish thesis on Brookfield Corporation on Value investing subreddit by Thick-Mud-1037. In this article, we will summarize the bulls’ thesis on BN. Brookfield Corporation's share was trading at $69.76 as of September 16th. BN’s trailing and forward P/E were 158.55 and 14.14 respectively according to Yahoo Finance.

Brookfield Corporation reported a strong Q2 2025 performance, with revenue significantly exceeding expectations and distributable earnings demonstrating robust growth, despite a slight EPS miss. The company also announced a three-for-two stock split, enhancing liquidity and potentially broadening appeal among retail investors. Despite strong operational results and a favorable macro backdrop, Brookfield continues to trade at a noticeable discount to its underlying Net Asset Value (NAV), reflecting the persistent “complexity discount” that the market applies to diversified asset managers.

This discount suggests that the market may still be underappreciating the value embedded across its diverse portfolio. The company’s strategic investments in long-duration, high-growth areas—including AI infrastructure projects such as the large-scale initiative in Sweden, renewable energy assets, and private credit platforms—position it to capitalize on secular macro trends, which could materially drive long-term value creation. Analyst sentiment remains broadly positive, with many reiterating “Buy” ratings and raising price targets, some as high as $83, signaling confidence in Brookfield’s growth trajectory and ability to unlock value.

However, risks remain, including potential headwinds from rising interest rates and modest insider selling activity, which could temper near-term investor enthusiasm. The combination of operational outperformance, strategic positioning in growth sectors, and corporate actions like the stock split could act as catalysts for a market re-rating, narrowing the NAV discount over time. Overall, Brookfield offers a compelling investment case with multiple levers for upside, balancing near-term risks with significant long-term value potential across its diversified asset base.

Previously we covered a bullish thesis on Brookfield Corporation by 310 Value in April 2025, which highlighted its discount to intrinsic value, diversified earnings, and robust perpetual capital base. The stock has appreciated approximately 36% since coverage as performance remained strong despite the complexity discount. Thick-Mud-1037 shares a similar view but emphasizes Q2 2025 results, the stock split, and strategic growth investments.

Brookfield Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held BN at the end of the second quarter which was 40 in the previous quarter. While we acknowledge the potential of BN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.