BBU Stock Forecast & Price Target

Brookfield Business Partners LP demonstrates a strong financial outlook, bolstered by evidence of significant financial growth, performance improvements, and financial de-leveraging within its investment portfolio. The company's extensive investment portfolio, along with positive investor sentiment regarding organic growth and margin expansion, positions it well for potential valuation upside as economic conditions improve. Furthermore, substantial capital deployment in recent years, coupled with a robust track record of investment performance, is expected to generate attractive net asset value (NAV) growth, reinforcing a favorable perspective on the stock's future prospects.

Brookfield Business Partners LP is facing a negative outlook primarily due to a downward revision in its EBITDA forecasts for the upcoming years, driven by disappointing performance in the Healthscope segment and management's acknowledgment of persistent challenges in its business lines, particularly DexKo and CDK Global. The company's industrials segment demonstrated some growth in Q4/24 with an EBITDA of $306 million, surpassing forecasts, yet this growth is overshadowed by broader headwinds and weaker-than-expected revenue from other segments, like Infrastructure Services, which reported an EBITDA of $160 million against a forecast of $149 million, but declined from $184 million in the previous year. The combination of these factors suggests that Brookfield's operational challenges and shifting market dynamics may hinder its overall financial performance moving forward.