Brambles' Reputation Takes Hit From Surprise Downgrade -- Market Talk

Dow Jones
05/19

2333 GMT - Brambles' surprise earnings downgrade means the market no longer views the pallet supplier as a business with highly predictable and stable earnings growth, Jefferies analysts warn. The CHEP brand owner cut its outlook after service-center subcontractors exited its repair network, and the Jefferies analysts are shocked that such important contracts in the U.S. could end so quickly. They also have questions over the timeline for fixing the issue, with a return to optimal plant levels delayed by 18 months. They tell clients in a note that they are keeping a hold rating on the stock but cut their target price 7% to A$19.55. Shares are at A$17.63 ahead of the open. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

May 18, 2026 19:33 ET (23:33 GMT)

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