
BBU Stock Forecast & Price Target
BBU Analyst Ratings
Bulls say
Brookfield Business Partners LP has demonstrated a strong positive outlook, supported by an increase in valuation multiples for its Business Services segment, which rose from 10x to 11x, and for its Industrials segment, from 9x to 9.5x. The company reported that its net asset value (NAV) has doubled since 2020, indicating a compound annual growth rate (CAGR) in the mid-teens, and projects further growth exceeding 15% driven by robust returns and improvements from AI and digitalization initiatives. Additionally, BBU has effectively utilized AI to enhance operational efficiencies, including a 1.5x increase in automated underwriting, which signifies its commitment to innovation and value creation.
Bears say
Brookfield Business Partners LP faces a negative outlook due to anticipated underperformance of its underlying investments, which is expected to lead to a compression of EV/EBITDA multiples by 1x across its key segments: Industrials, Infrastructure Services, and Business Services. This decline in multiples indicates a potential deterioration in market valuations, reflecting waning confidence in the company's ability to deliver satisfactory financial returns. Given that the majority of the company’s revenue is derived from the UK, any macroeconomic challenges in that region could further exacerbate the adverse effects on its financial performance.
This aggregate rating is based on analysts' research of Brookfield Business Partners and is not a guaranteed prediction by Public.com or investment advice.
BBU Analyst Forecast & Price Prediction
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