Goldman Sachs initiated coverage of Brookfield Corp. (NYSE:BN) at Buy, noting that it provides investors access to a capital compounder at a discount.

The firm combines the scale and stability of a global, diversified balance sheet of assets with the expertise from its 73%-ownership in Brookfield Asset Management (BAM), analyst Alexander Blostein said. The total Brookfield empire oversees almost $1T of assets that encompasses real estate, infrastructure, renewable energy, private equity, private credit, and insurance.

"We view BN as a capital compounder that is on the cusp of seeing a significant step-up in excess capital generation, resulting in faster book value growth, higher ROE and a greater return of capital (share repurchases) opportunities," analyst Alexander Blostein wrote in a note to clients.

He sees improving cash flow dynamics in Brookfield's (NYSE:BN) real estate business, the biggest source of the company's enterprise value discount, a step-up in carried interest/performance fees, and steady growth in insurance among several business model advantage.

seekingalpha.com - Brookfield corp scores buy rating at goldman sachs