
BBU Stock Forecast & Price Target
BBU Analyst Ratings
Bulls say
Brookfield Business Partners LP has seen a significant increase in its price multiples for its business service and industrial segments, with the former rising from 10x to 11x and the latter from 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, which is expected to continue compounding at over 15% due to strong returns and advancements in AI and digitalization. Moreover, Brookfield has effectively utilized AI to enhance its operations, specifically in automated underwriting, loss forecasting, and fraud prevention, further supporting its positive growth outlook.
Bears say
Brookfield Business Partners LP faces a negative outlook primarily due to anticipated underperformance of its underlying investments, which could lead to a compression of EV/EBITDA multiples by 1x across its operating segments, including Industrials, Infrastructure Services, and Business Services. This compression indicates potential challenges in revenue generation and profitability within key areas of operation, which could adversely affect overall financial health. As the company generates a significant portion of its revenue from these segments, any decline in performance may significantly impact its stock valuation and investor confidence.
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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