Brookfield Business Partners stock rating raised to outperform by RBC

Published 18/06/2025, 09:32
Brookfield Business Partners stock rating raised to outperform by RBC

RBC Capital assumed coverage of Brookfield Business Partners L.P. (NYSE:BBU) with an outperform rating on Wednesday, raising the price target to $33.00 from $30.00. According to InvestingPro data, BBU’s stock has shown strong momentum with a 28% return over the past year, trading near $25.

The investment firm cited BBU’s strong investment performance track record as a key factor in its decision, noting the company’s differentiated investment strategy and capital deployment over recent years have positioned it for potential strong NAV growth. InvestingPro analysis confirms management’s active share repurchase program, with additional ProTips available for subscribers.

RBC Capital described BBU as effectively representing a limited partner interest in Brookfield’s private equity strategies, providing investors with a liquid method of accessing this asset class.

The firm highlighted BBU’s current valuation as attractive, with the company actively supporting its share price through ongoing share buybacks.

BBU serves as Brookfield’s private equity arm, focusing on acquiring and managing business services and industrial operations across multiple sectors globally.

In other recent news, Brookfield Business Partners reported mixed first-quarter results, with earnings surpassing analyst expectations but revenue experiencing a notable decline. The company posted adjusted earnings per share of $0.38 for Q1 2025, up from $0.23 in the same quarter last year. However, revenue fell sharply to $6.75 billion from $12.02 billion in Q1 2024. Despite the revenue drop, Brookfield Business Partners saw its Adjusted EBITDA rise to $591 million, indicating improved operational efficiency. The Industrials segment stood out with Adjusted EBITDA increasing to $304 million, aided by $72 million in tax benefits from its advanced energy storage operation. Meanwhile, the Business Services segment experienced a modest increase in Adjusted EBITDA, whereas the Infrastructure Services segment saw a decline. The company also announced plans to acquire Antylia Scientific for approximately $1.3 billion, aiming to secure a 25% stake with an investment of about $160 million. Brookfield Business Partners continues to maintain its quarterly dividend of $0.0625 per unit, despite the mixed financial results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.