Morgan Stanley analyst Robert Kad maintained a Hold rating on Brookfield Infrastructure on November 7 and set a price target of $41.00.
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Robert Kad has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Brookfield Infrastructure. The company’s Utilities segment showed positive performance, benefiting from inflation indexation and significant capital additions. However, these gains were partially offset by increased borrowing costs due to rising interest rates in Brazil and the divestiture of its Mexican natural gas transmission business.
In the Transport segment, the impact of asset sales, including an Australian export terminal and a stake in a logistics business, was counterbalanced by modest rate increases across rail networks and toll roads. The Midstream segment experienced robust customer activity and asset utilization, yet faced income loss from the sale of a US gas pipeline. Additionally, while the Data segment saw growth from acquisitions and organic expansion, the overall financial results were in line with expectations, leading to a cautious outlook. These mixed results contribute to the Hold rating, suggesting that while there are growth prospects, potential risks and uncertainties remain.
In another report released on October 29, Jefferies also downgraded the stock to a Hold with a $37.00 price target.
BIP’s price has also changed moderately for the past six months – from $31.640 to $35.220, which is a 11.31% increase.