
BBU Stock Forecast & Price Target
BBU Analyst Ratings
Bulls say
Brookfield Business Partners LP has witnessed a significant increase in the valuation multiples for its Business Services and Industrials segments, which have risen from 10x to 11x and from 9x to 9.5x, respectively. The company has reported a doubling of its net asset value (NAV) since 2020, reflecting a compound annual growth rate (CAGR) in the mid-teens, with expectations of continued compounding at over 15% driven by strong returns and advancements in AI and digitalization. The effective integration of AI in operations, enhancing automated underwriting, loss forecasting, and fraud prevention, further supports Brookfield Business Partners' positive outlook by bolstering operational efficiency and value creation.
Bears say
Brookfield Business Partners LP faces a negative outlook primarily due to the risk of its underlying investments underperforming, which may lead to a compression of EV/EBITDA multiples by 1x across its key segments, including Industrials, Infrastructure Services, and Business Services. This potential compression could significantly impact the company's valuation and financial performance. The reliance on these segments, particularly in a challenging economic environment, heightens concerns regarding the sustainability of its revenue generation and profitability.
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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