BBU Stock Forecast & Price Target

Brookfield Business Partners LP has demonstrated strong financial growth and performance, coupled with financial de-leveraging within its investment portfolio, which positions the company favorably for material valuation upside in the near term. The breadth and size of BBU’s investment portfolio, along with evidence of organic growth, margin expansion, and improved financial performance, are expected to enhance investor confidence and drive share price appreciation. Furthermore, substantial capital deployment combined with a solid investment performance track record is projected to generate attractive net asset value (NAV) growth, supporting an optimistic outlook for the stock as market conditions become more favorable.

Brookfield Business Partners LP has experienced a notable reduction in its EBITDA forecasts for both 2024 and 2025, primarily attributed to disappointing results from the Healthscope segment and anticipated pressures in other areas such as DexKo and CDK Global. Furthermore, while the Industrials segment showed an increase in EBITDA to $306 million in Q4/24, this figure still fell short of expectations, contributing to an overall negative outlook amidst a backdrop of operational challenges. The Infrastructure Services segment also underperformed compared to prior forecasts, generating only $160 million in EBITDA, which further compounds the concerns surrounding the company's financial performance.