Brookfield Business Partners L.P.
Brookfield Business Partners L.P. is currently positioned as a compelling investment opportunity, highlighted by three key positive metrics that underscore its potential for growth:
About
Brookfield Business Partners L.P. was founded in 2016 and is based in Hamilton, Bermuda. Specializing in growth and acquisitions, it primarily invests in sectors such as business services, infrastructure, construction, energy, and industrials. The firm typically seeks majority controlling stakes in its investments and aims for returns of at least 15%-20%. Brookfield Business Partners operates as a subsidiary of Brookfield Corporation and focuses on global investment opportunities.
1. Bullish Indicators
Stock Target Advisor’s Ai analysis classifies Brookfield Business Partners as Slightly Bullish. This rating reflects a mix of positive and negative indicators, with 9 positive signals pointing to strong fundamentals and growth prospects.
Positive Signals
- Cash Flow Valuation: The stock is considered underpriced based on cash flow, trading low compared to peers.
- Book Value Valuation: It is also underpriced relative to book value.
- Positive Cash Flow: The company has had positive total cash flow over the past four quarters.
- Free Cash Flow: Positive free cash flow has been maintained in the same period.
- Market Capitalization: It is among the largest companies in its sector, suggesting stability.
- Earnings Growth: The stock has shown strong earnings growth over the last five years.
- Earnings Valuation: Trading low on a price-to-earnings basis indicates potential undervaluation.
- Return on Equity: The management has delivered superior return on equity compared to peers.
Negative Signals
- Return on Assets: The company has delivered a below-median return on assets.
- Dividend Returns: Low average income yield over the past five years, which may be a concern for income-focused investors.
- Total Returns: The company has underperformed its peers in total returns over the past five years.
- Volatility: High volatility in total returns indicates increased risk.
- Risk-Adjusted Returns: The company offers below-median risk-adjusted returns, making it less predictable.
- Leverage: It is highly leveraged compared to sector peers, which may reflect aggressive growth strategies.
2. Strong Buy Recommendation
The average analyst rating for Brookfield Business Partners is classified as a Strong Buy. This designation is based on the assessments of 3 analysts, who foresee a strong potential for price appreciation. The consensus among analysts suggests confidence in the company’s growth strategy, operational efficiencies, and strong leadership. With an average target price of CAD 30.25 for the next 12 months, this rating indicates that analysts believe the stock is undervalued at its current price of CAD 33.82. The Strong Buy rating reflects a bullish sentiment about the company’s ability to deliver returns to investors.
3. Crowd Rating is Bullish
In addition to analyst opinions, Brookfield Business Partners also enjoys a Bullish Crowd Rating. This rating captures the sentiments of retail investors and market participants, indicating a strong level of confidence among the broader investment community. A bullish crowd rating often correlates with positive trends in social media discussions, increased trading volume, and overall investor enthusiasm. This suggests that market sentiment is supportive of the company, potentially leading to upward momentum in its stock price.
Stock Performance Overview
At the last closing, Brookfield Business Partners L.P.’s stock price was CAD 33.82. The stock has shown impressive performance over various time frames, including:
- +9.49% increase over the past week,
- +17.11% increase over the past month,
- +68.68% increase over the past year.
This strong upward trend not only reflects investor confidence but also reinforces the bullish outlook from analysts and the crowd. The combination of solid recent performance and positive sentiment indicates that Brookfield Business Partners is well-positioned for continued growth.
Outlook
Brookfield Business Partners L.P. is viewed favorably by both analysts, retail investors and Ai fundamental analysis, making it a top pick for those looking to invest in a company with a positive outlook. The Slightly Bullish analysis, Strong Buy recommendations, and Bullish Crowd sentiment collectively underscore the potential for future price appreciation, suggesting that investors may find value in this investment opportunity as it continues to navigate the market landscape.
STA Research is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI.
