Brookfield Business Partners L.P. (BBU-N)

As analysts revise upwards their earnings outlooks, we reiterate BBU as a TOP PICK.  The company has realized over $6 billion in divestitures -- yielding a 30% IRR.  This is allowing cash reserves to grow, debt to be reduced and shares bought back.  It trades under book value and supports a 29% ROE.  We recommend trailing up the stop (from $19) to $21, looking to achieve $31 -- upside potential of 30%.  Yield 1.0% 

We reiterate this Canadian based private equity company as a TOP PICK.  Its investments are generally majority owned and internationally based, looking for capital returns in excess of 15% annually -- demonstrating the expertise of management.  We like that cash reserves are growing as debt is retired and shares bought back.  It trades at 17x earnings, under book value and supports a 20% ROE.  We continue to recommend a stop at $19, looking to achieve $28 -- upside potential of 27%.  Yield 1.1%

We reiterate BBU as a TOP PICK.  Analysts like their consistent 30% IRR over 12 consecutive projects and they see a long runway of opportunities.  We like that cash reserves are stable as the company aggressively retires debt.  It trades at 17x earnings and under book value.  We recommend trailing up the stop (from $17) to $19, looking to achieve $30 -- upside potential of 33%.  Yield 1.4% 

BBU operates as a private equity company seeking assets that generate steady operating returns.  Since 2016, annual earnings growth has averaged over 35%.  It trades under book value and supports a 20% ROE.  We like that cash reserves are growing, while debt is aggressively retired.  We recommend setting a stop at $17, looking to achieve $26 -- upside potential of 26%.  Yield 1.2%