
BBU Stock Forecast & Price Target
BBU Analyst Ratings
Bulls say
Brookfield Business Partners LP has demonstrated a significant increase in its business service and industrial segments' valuation multiples, with the former rising from 10x to 11x and the latter from 9x to 9.5x, indicating positive market sentiment towards these divisions. The company has effectively doubled its net asset value (NAV) since 2020, implying a mid-teens compound annual growth rate (CAGR), with expectations of continued compounding at over 15% driven by strong returns. Furthermore, BBU's strategic investments in artificial intelligence have enhanced operational efficiencies, such as a 1.5x increase in automated underwriting, which bolsters its growth potential and risk management capabilities.
Bears say
The negative outlook on Brookfield Business Partners LP is primarily driven by concerns regarding the performance of its underlying investments, which might fall below expectations. This performance shortfall could lead to a compression of EV/EBITDA multiples by 1x across its key operating segments, including Industrials, Infrastructure Services, and Business Services. Given that the company generates a significant portion of its revenue from the Business Services segment, this potential compression poses a substantial risk to its overall financial performance and valuation.
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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