Brambles Bull Sees Capacity for Additional Buybacks

Dow Jones
08/20

0106 GMT - Brambles' bull at Citi sees the CHEP pallet operator maintaining sufficient capacity for further share buybacks. Analyst Samuel Seow points out that the Australia-listed company's guidance for fiscal 2027 free cash flow of between US$800 million and US$950 million includes additional investments in new pallets and plant capacity. The drag on fiscal 2026 profit from repair capacity constraints was larger than Brambles and Citi anticipated, but Seow thinks investors with a longer-term view of the stock will welcome the improved clarity on the timing of the operational recovery. Citi has a last-published buy rating on the stock and a target price of 22.80 Australian dollars. Shares are down 5.5% at A$18.40.

 

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