Brookfield's Valuation Remains Disconnected From Fundamentals, RBC Says

10:50 AM EDT, 09/18/2026 (MT Newswires) -- Brookfield (BN) shares are trading at a 40% discount to management's estimate of current plan value and a 50% discount to RBC's forward net asset value estimate, leaving valuation disconnected from fundamentals and making the stock a top pick, RBC Capital Markets said Friday. The brokerage said Brookfield targeting a 24% compound annual growth rate for distributable earnings with Wealth Solutions is a key contributor to growth. The company is targeting a 17% CAGR in distributable earnings per share from 2026 to 2031 from its base business, largely in-line with last year's growth targets, according to the note. Management highlighted its expectation of $25 billion realized carried interest over the next 10 years, with $11 billion expected over the next 5 years, the note added. Despite monetization increasing 3 times from $30 billion in 2021 to nearly $90 billion in 2026, the $5 billion targeted over the next 1 to 3 years is 17% lower than the $6 billion outlook provided at last year's investor day, the brokerage said. While RBC expects higher rates to impact real estate in the near-term, with real estate accounting for about 18% of Brookfield's NAV, longer-term outlook remains constructive due to improving demand and supply fundamentals in both office and retail real estate markets, as well as the company's progress on its monetization plan, the brokerage added. RBC kept an outperform rating on Brookfield with a price target of $61. Price: 37.16, Change: -0.03, Percent Change: -0.09