Brookfield Business' (BBUC) capital recycling momentum continues on monetizations through the sale of Multiplex and Altera and investments across freight service and industrial operators this year, RBC Capital Markets said in a Tuesday research report.
RBC stated it lowered its 2026 and 2027 earnings before interest, taxes, depreciation and amortization guidance to $2.41 billion and $2.55 billion, respectively. For 2028, it expects EBITDA of $2.72 billion.
The company's Canadian residential mortgage default insurer, Sagen, recorded a loss ratio of 17%, and management expects it to increase up to 25%, according to the note.
The brokerage said it reiterated its outperform rating on the stock and price target of $40 per share.
Price: $30.59, Change: $-0.50, Percent Change: -1.62%