Analyst Devin Dodge of BMO Capital reiterated a Buy rating on Brookfield Business Partners, retaining the price target of $38.00.
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Devin Dodge has given his Buy rating due to a combination of factors that highlight Brookfield Business Partners’ strong position and future potential. The company’s recent investor presentation underscored its attractive risk/reward profile, particularly with the significant progress made in reducing leverage. This financial improvement is expected to facilitate increased capital deployment and better alignment with capital recycling strategies.
Additionally, the planned transition to a single C-Corp structure is anticipated to enhance trading liquidity and attract more index-focused investors, which could increase share ownership. The narrowing price spread between BBU and BBUC following this announcement suggests positive market reception. Furthermore, the company’s financial infrastructure platform has been expanding robustly, with significant market share in the Middle East and a promising outlook in the financial infrastructure sector. These strategic moves, along with improved valuations of key investments, support the Buy rating with a target price of $38.
According to TipRanks, Dodge is a 5-star analyst with an average return of 13.2% and a 72.59% success rate. Dodge covers the Industrials sector, focusing on stocks such as Brookfield Business Partners, Enviri, and Stantec.
In another report released today, Scotiabank also maintained a Buy rating on the stock with a $39.00 price target.