Brambles Bulls Think Investors Need Proof of Improvement

Dow Jones
08/21

0238 GMT - Brambles' bulls at UBS concede that wider investor sentiment toward the global pallet supplier may take time to improve. Maintaining a buy on the Australia-listed stock, the UBS analysts tell clients in a note that investors may need proof that Brambles has addressed its U.S. repair constraints before becoming more positive. They think a strong second half to the current fiscal year could be key to a fuller re-rate. Looking further ahead, UBS forecasts 5.4% underlying earnings growth in fiscal 2028, which they say is undemanding compared with Brambles' track record. UBS raises its target price by 0.8% to 24.50 Australian dollars. Shares are up 2.1% at A$19.195.

 

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