Opinions
Greg Newman
Brookfield Infrastructure Partners
BIP.UN-T
TOP PICK
Feb 27, 2025
Stock price when the opinion was issued
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Q3 banged out another 7% YOY. Inflation-linked revenues. Deal pipeline continues to grow. Hit capital recycling targets for 2024. Modelling 15% AFFO growth rate, yet trading at 9.68%. Still likes it, thinks it'll go higher. Yield is 5%.
Announced 2 asset sales, gives them a lot of dry powder. Last quarter beat by ~5%; showed strength in midstream, utilities, data, and transport. Boosted distribution by 6%. Inflation-linked revenues. Large backlog. Data centre growth is a great piece of growth. Trades at 8.5x 2027 AFFO, modeling ~11% growth. Yield is 5.8%.
(Analysts’ price target is $57.86)Management's doing what they said they would. It's a yield + growth play. Not sure why it's not performing as well as other utilities. Capital recyclers, and perhaps market prefers using capital for buy-and-hold projects. But they continue to execute their strategy well.
Pretty darn defensive. Firing on all cylinders. Monetizing with 2 recent sales. Evidence of capital recycling. Announced 15% stake in Colonial Pipeline in TX. Counter-cyclical; buys assets in bad markets. Real, inflation-linked revenues. Excellent growth outlook. Much more diversified than in years past.
Reasonable 9x price to AFFO, growing ~12.6%. Good value right here. Yield is 6.20%, which he sees rising ~6% every year.
Just beat by 5%. Strong momentum in its segments. Inflation-linked revenues. Large organic pipeline, robust deal-making. Company's bullish about data growth. His estimates show it growing 11%, and trading at 10x. Fairly priced, nice compounder, dividend grows 6% annually. Yield is 5.4%.
(Analysts’ price target is $57.94)Good US assets, Brookfield management is innovative. Business operations are very strong long term, not affected by short-term tariffs. Now, if tariffs are imposed for the long game, there's almost no name that would be unscathed.