(BBU-UN) Brookfield Business - Ratings and Ratios

Brookfield Business Partners L.P. is a private equity firm that focuses on investing in businesses with strong growth potential, leveraging its expertise in growth capital, divestitures, and acquisitions to drive value creation. The firms investment scope spans multiple sectors, including business services, infrastructure services, construction, energy, and industrials, with a global reach and a preference for taking majority controlling stakes in companies. With a target return on investment of at least 15%-20%, the firm is driven to identify opportunities that can deliver substantial returns.

As a subsidiary of Brookfield Corporation, Brookfield Business Partners L.P. benefits from its parent companys extensive resources and network, allowing it to tap into a broad range of expertise and investment opportunities. Founded in 2016 and headquartered in Hamilton, Bermuda, the firm has established itself as a significant player in the private equity landscape.

Analyzing the technical data, the stocks current price is $34.00, slightly below its 20-day simple moving average (SMA) of $34.40, indicating a potential short-term correction. However, the stock is above its 50-day SMA of $31.88 and 200-day SMA of $32.27, suggesting a longer-term uptrend. The average true range (ATR) of 1.05, or 3.09%, indicates moderate volatility. Given the current technical setup, a potential price target could be the 52-week high of $36.82, representing a 8.3% upside from current levels.

From a fundamental perspective, Brookfield Business Partners L.P.s market capitalization stands at $3.06 billion CAD, with a forward price-to-earnings ratio of 28.41, indicating a relatively high valuation. However, the firms return on equity (RoE) of 6.00% suggests a stable and profitable business model. Considering the firms strong track record and the current market conditions, a forecast for the stock could be a 10% annual return over the next 2-3 years, driven by a combination of dividend yield and capital appreciation.

Taking into account both the technical and fundamental data, a potential investment thesis for Brookfield Business Partners L.P. could be formed. The stocks current technical setup, combined with the firms strong fundamental profile, suggests a potential buying opportunity, with a target price of $38.00-$40.00 over the next 12-18 months, representing a 12%-18% upside from current levels.