UPDATE: Credit Suisse Upgrades Brookfield Infrastructure Partners LP to Outperform, Raises PT on Mispriced Distribution Growth

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In a report published Wednesday, Credit Suisse analyst Andrew M. Kuske upgraded the rating on
Brookfield Infrastructure Partners LPBIP
from Neutral to Outperform, and raised the price target from $42.00 to $46.00. In the report, Credit Suisse noted, “Based on our analytics, we believe Brookfield Infrastructure Partners has mispriced distribution growth. That growth looks to be supported by ongoing organic development along with M&A potential. As per our Ideas Engine report, on a DDM basis, our calculated historical 5-year ‘k' is 17.8% for BIP with a 9.8% growth rate (2014-15 on consensus). In our view, that ‘k' value is undemanding and was clearly skewed upwards in the financial crisis along by a much smaller BIP at the time of the original Brookfield Asset Management spin. We view BIP as uniquely positioned in our coverage universe given a global platform, the BAM relationship, a mild degree of economic sensitivity and, among other things, the capital recycling potential to support an M&A program. Given the valuation comparative and outlook, we upgrade BIP to Outperform from Neutral and increase our target price to US$46 from US$42.” Brookfield Infrastructure Partners LP closed on Tuesday at $40.54.
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Posted In: Analyst ColorUpgradesAnalyst RatingsAndrew M. KuskeCredit Suisse
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