Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 27 Jan, 26 | BEP | Buy | USD 28.27 | USD 29.7 | USD 31.5 | 8 days | Closed |
8.38%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities in the North America, Colombia, and Brazil. The company generates electricity through hydroelectric, wind, solar, distributed generation, and pumped storage; and offers sustainable solutions, such as renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, nuclear services, eFuels, and power transformation. It operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. The company was founded in 1999 and is based in Toronto, Canada.
Improved Operating Cash Generation (FFO Growth): Funds From Operations rose to USD 302 million in Q3 FY25 compared with USD 278 million in Q3 FY24
Revenue Expansion Momentum: During Q3 FY25, Brookfield Renewable reported revenues of USD 1,596 million, up from USD 1,470 million in Q3 FY24
Higher Operating Cost Base from Portfolio Scale-Up: Direct operating costs climbed to USD 721 million in Q3 FY25 versus USD 623 million in Q3 FY24
Rising Interest Expense from Growth-Funded Capital Structure: Interest expense increased materially to USD 586 million in Q3 FY25 from USD 514 million in Q3 FY24
Brookfield Renewable’s aggressive expansion strategy exposes the company to elevated financing costs, earnings volatility from high depreciation and interest burdens, and operational sensitivity to hydrology and regulatory shifts across multiple geographies, which may pressure near-term profitability despite strong cash flow growth
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 28.27 | 25.0 | 29.7 | 31.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth Driven by Portfolio Expansion and Hydrology Tailwinds: Brookfield Renewable Partners L.P. delivered solid top-line growth in Q3 FY25, with consolidated revenues rising to USD 1,596 million from USD 1,470 million in Q3 FY24, supported by contributions from newly commissioned assets, inflation-linked contracted revenues, and stronger hydrology across Canadian and Colombian hydroelectric operations. The company’s expanding asset base continues to enhance revenue resilience and scale across global markets.
Strengthening Operating Cash Flows and Earnings Quality: Funds From Operations (FFO), a key cash flow metric, increased to USD 302 million in Q3 FY25 compared with USD 278 million in Q3 FY24, while FFO per unit rose to USD 0.46 from USD 0.42, reflecting improved operational performance, accretive acquisitions, and embedded inflation escalators within long-term power contracts. Normalized FFO also showed strong underlying momentum, highlighting sustainable cash flow growth.
Significant Capacity Additions and Portfolio Scale-Up: Total operating capacity expanded materially to 48,673 MW in Q3 FY25 from 35,225 MW in Q3 FY24, driven by the delivery of over 8,200 MW of new projects over the past twelve months across wind, solar, distributed energy, and storage segments. This capacity expansion further strengthens Brookfield Renewable’s positioning as a global leader in clean energy infrastructure.
Improved Generation Volumes Supporting Revenue Stability: Actual total generation increased to 27,554 GWh in Q3 FY25 versus 19,684 GWh in Q3 FY24, reflecting stronger resource availability and the contribution from recently commissioned assets. Long-term average generation also rose sharply, reinforcing the durability and diversification of the company’s renewable portfolio across geographies and technologies.
Disciplined Capital Structure and Strong Liquidity Profile: Brookfield Renewable maintained a conservative financial posture with USD 4.7 billion in available liquidity, corporate debt to capitalization at 14%, and approximately 90% of borrowings structured as non-recourse. The predominance of fixed-rate, long-tenor debt enhances cash flow visibility and mitigates interest rate volatility amid a higher-rate environment.
Ongoing Strategic Recycling and Growth Investments: The company continued to execute its asset recycling strategy, agreeing to sales expected to generate ~USD 2.8 billion in proceeds, while redeploying capital into high-quality platforms such as increased ownership in Isagen and expanded sustainable solutions investments. These initiatives optimize portfolio returns while funding long-term growth.
Net Earnings Volatility Amid Expansion Phase: Despite stronger operating cash flows, Brookfield Renewable reported a net loss attributable to unitholders of USD 120 million in Q3 FY25, though improved from USD 181 million in Q3 FY24, largely reflecting higher depreciation, financing costs tied to growth investments, and non-cash accounting impacts typical of large-scale infrastructure expansion phases.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Brookfield Renewable Partners L.P. (NYSE: BEP) at the closing market price of USD 28.27, as on Jan 26, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Utilities Industry: Utilities - Renewable
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BEP Brookfield Renewable Partners LP |
1.00 2.94% | 35.24 | - | 188.68 | 3.26 | 2.15 | 6.77 | 8.71 |
| DNNGY Orsted A/S ADR |
- -% | 7.39 | 83.60 | 25.45 | 0.46 | 1.47 | 3.58 | 11.21 |
| OEZVY Verbund AG ADR |
- -% | 13.01 | 10.72 | 13.53 | 2.57 | 3.06 | 2.51 | 6.50 |
| AXIA AXIA Energia |
-0.32 3.11% | 9.98 | 28.04 | 21.37 | 0.71 | 1.22 | 4.73 | 54.02 |
| FOJCY Fortum Oyj ADR |
- -% | 4.57 | 25.20 | 20.45 | 4.54 | 2.34 | 4.20 | 14.56 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 27, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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