Strategic Financial Maneuvers and Undervalued Portfolio Drive Buy Rating for Brookfield Business Partners

BMO Capital analyst Devin Dodge maintained a Buy rating on Brookfield Business Partners (BBU – Research Report) on May 2 and set a price target of $34.00.

Devin Dodge has given his Buy rating due to a combination of factors that highlight the potential for significant returns and the strategic financial maneuvers of Brookfield Business Partners. The company has been actively engaging in capital recycling, which has allowed it to reduce debt, invest in new opportunities, and repurchase shares. This strategic approach not only strengthens the financial position of the company but also enhances the potential for shareholder returns.
Furthermore, the company’s portfolio is perceived as undervalued, offering investors access to a high-quality private equity platform with minimal fees. The recent financial results have been solid, with the company’s EBITDA aligning closely with expectations, and certain segments, such as Industrials, performing better than anticipated. Additionally, the company’s limited exposure to tariffs and its proactive management of potential impacts further support the positive outlook. These factors collectively contribute to the Buy rating, reflecting confidence in the company’s ability to deliver value to its investors.

In another report released today, Scotiabank also maintained a Buy rating on the stock with a $29.00 price target.