Seeking Alpha: Brookfield Infrastructure Looking At A World Of Possibilities

Infrastructure specialist Brookfield Infrastructure (NYSE:BIP) may not have the gaudiest recent track record - the shares are up almost 6% over the past year, and up about 8% since my last article - but the company has a good track record of efficiently generating cash flows from its investments and passing them along to investors as dividends. What's more, with many governments and emerging market corporations experiencing meaningful credit stress, Brookfield is looking to leverage its position as a high-quality buyer with a low cost of capital to add significant assets to the portfolio.

Modeling Brookfield Infrastructure is always going to require some guesswork about the amount of capital the company will deploy into acquisitions and growth, as well as the cost and form of that capital (including equity raises). That said, I believe management will succeed in generating a long term per-share distributable cash flow growth rate in the mid-single digits to high single digits. Discounted back, that suggests a fair value in the high $40's to low $50's and argues for serious consideration of these shares.

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Brookfield Infrastructure Looking At A World Of Possibilities