Credit Suisse Upgrades Brookfield Infrastructure Partners (BIP) to Outperform (Earlier)

Credit Suisse earlier upgraded Brookfield Infrastructure Partners (NYSE: BIP) from Neutral to Outperform with a price target of $46.

Analyst Andrew M. Kuske said, "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," he added.

For an analyst ratings summary and ratings history on Brookfield Infrastructure Partners click here. For more ratings news on Brookfield Infrastructure Partners click here.

Shares of Brookfield Infrastructure Partners closed at $40.80 yesterday.

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