
BBU Stock Forecast & Price Target
BBU Analyst Ratings
Bulls say
Brookfield Business Partners LP is experiencing a positive outlook due to increased valuation multiples for its business services and industrials segments, with respective adjustments from 10x to 11x and 9x to 9.5x. The company's net asset value (NAV) has doubled since 2020, reflecting a compound annual growth rate (CAGR) in the mid-teens, and is expected to continue compounding at over 15%, driven by strong returns and advancements in artificial intelligence and digitalization. Furthermore, Brookfield has successfully leveraged AI to enhance its operational efficiencies, including a 1.5x increase in automated underwriting, which bolsters its growth potential and value creation strategies.
Bears say
Brookfield Business Partners LP faces a negative outlook due to the potential underperformance of its underlying investments, which could lead to a compression of EV/EBITDA multiples by 1x across its key operating segments: Industrials, Infrastructure Services, and Business Services. This scenario indicates a risk to the company's profitability and valuation metrics, suggesting increasing financial strain. Given that the majority of its revenue is derived from the Business Services segment, any deterioration in performance there could significantly impact overall financial health.
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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