BXB – Citi rates the stock as Neutral

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Walmart has signed an agreement with Polymer Logistics to roll out a new look RPC. This Polymer RPC has the same characteristics as others but looks like a wooden crate.

Walmart has around 50% of its fresh produce supplied in RPCs of which IFCO/CHEP is presumed to be a key supplier.

Citi assumes Brambles is heavily invested in the current format RPCs and traction with the Polymer RPC could result in some displacement in the longer term.

The broker considers Brambles is fair value and retains a Neutral rating and $10.95 target.

Sector: Commercial Services & Supplies.

Target price is $10.95.Current Price is $10.84. Difference: $0.11 – (brackets indicate current price is over target). If BXB meets the Citi target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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