Morgan Stanley upgrades Brookfield Infrastructure on AI and data centre growth
Brookfield Infrastructure Partners (BIP) has received a major vote of confidence from Morgan Stanley. The investment bank upgraded the stock from Neutral to Overweight on 23 March 2026, setting a $45 price target. Analysts believe the company's rapid expansion in data centres across the US and Europe has yet to be fully reflected in its share price.
The upgrade follows BIP's growing role as a key developer of data infrastructure, particularly in artificial intelligence. Morgan Stanley expects the firm to invest around $500 million annually in AI-related projects, with returns surpassing initial forecasts.
Dividend growth is also set to accelerate. The bank predicts BIP's payout increases will land at the upper end of its 5%–9% target range. Funds from operations (FFO) per unit could climb from 7.1% to 12.5% over the next three years. The report also highlights a potential narrowing of valuation gaps. Spreads between BIP and its sister company BEP—along with their corporate tracking stocks, BIPC and BEPC—may tighten as growth becomes clearer. No similar upgrades for other Brookfield Group entities, such as Brookfield Asset Management, were noted in available data for comparison.
The upgrade signals confidence in BIP's ability to capitalise on data centre demand and AI-driven infrastructure. With higher dividend growth and stronger FFO projections, investors may see the stock's current price as undervalued. Morgan Stanley's $45 target suggests significant upside if the company delivers on its expansion plans.
