Brookfield Renewable Partners: Morningstar Maintains Buy Rating with $41 Target Forecast

STA Research
March 22nd, 2025
Brookfield Renewable Partners L.P. (BEP-UN:CA) TD Securities Forecasts 20% Upside
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Brookfield Renewable Partners (BEP-UN:CA) (BEP)

Analyst Update

Brookfield Renewable Partners, one of the world’s largest publicly traded renewable energy platforms, has received a Buy rating from Morningstar (Analyst Rank#47) with a target price of CAD 41. This rating and price target reflect the company’s strong positioning within the renewable energy sector and its potential for continued growth. As the global energy market shifts toward more sustainable practices, Brookfield Renewable Partners stands out as a key player in the industry, leveraging its diversified renewable energy assets to capture increasing demand for clean energy.

Brookfield Renewable Partners Stock Forecast and Analysis

Based on the stock forecast from 5 analysts, the average target price for Brookfield Renewable Partners L.P. is CAD 38.57 over the next 12 months. This target represents a potential upside from its current trading price of CAD 33.78. The analysts’ consensus rating is Strong Buy, which reflects the general optimism surrounding the company’s growth potential within the renewable energy sector. A Strong Buy rating typically suggests that analysts believe the stock is undervalued relative to its future earnings potential and is a good investment for long-term growth.

Stock Target Advisor’s Bearish Stance

Despite the analyst’s favorable outlook, Stock Target Advisor provides a more bearish perspective. This analysis is based on 3 positive signals and 8 negative signals, implying that while the company has certain strengths, there are also several risks that investors should be aware of. Here’s an overview of the positive and negative factors influencing Stock Target Advisor‘s analysis.

Stock Performance Overview

  • Last Closing Price: CAD 33.78
  • Recent Stock Movement:
    • 1-week change: +2.61%
    • 1-month change: +1.14%
    • 1-year change: +10.57%

Brookfield Renewable has shown positive movement in its stock price, particularly over the last year, with an increase of more than 10%. Over the past month and week, the stock has posted modest gains, reflecting some positive sentiment toward the company.

Outlook: A Stock with Both Potential and Risks

Brookfield Renewable Partners L.P. has promising long-term growth potential due to its diversified portfolio, stable cash flow from long-term contracts, and its position in the growing renewable energy market. Analysts are optimistic about the company’s future, with a target price of CAD 38.57, representing an upside from its current trading price of CAD 33.78.

However, Stock Target Advisor’s Bearish outlook, based on 3 positive signals and 8 negative signals, highlights several risks that investors should consider. The overvaluation of the stock relative to its sector peers, potential interest rate hikes, currency fluctuations, and regulatory challenges pose risks to its short-term performance.

Investors looking to enter or hold positions in Brookfield Renewable Partners should weigh the long-term growth potential of the renewable energy sector against the risks posed by valuation concerns, market volatility, and external factors that could affect performance. A diversified investment approach, along with a careful assessment of risk tolerance, is recommended when considering investments in this stock.

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