Now that Brambles has decided not to invest in a plastic pallet pool for costco’s US supply chain, Credit Suisse believes a significant discount in the company’s share price may reverse.
Moreover, the analyst feels that if Brambles couldn’t get an attractive return with its scale advantages, then it’s unlikely competitors will be able to do so. The Outperform rating and $13.45 target price are unchanged.
Sector: Commercial & Professional Services.
Target price is $13.45.Current Price is $11.05. Difference: $2.40 – (brackets indicate current price is over target). If BXB meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
