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Brookfield Renewable Partners L.P. (BEP.UN)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Please rate each one for growth potential (1=poor, 10=good) over the next year and why for each
5i Research Answer:
In terms of growth potential and total returns, we think BN would have the highest ratings between them of 8, as the company retains the majority of its earnings to reinvest in growth projects, but these reinvestments would be mainly long duration assets/projects. Lower rates and low (global) valuations might allow it to be more aggressive with deals, and it has a massive amount of capital available. We think BEP.UN and BEPC could be on par with each other around 6. They are twinned companies so have the same economic scenarios. While solid, with higher distributions there is less capital available for growth overall.