BXB – UBS rates the stock as Buy

Brambles’ result has led the broker to reduce earnings forecasts, noting a -1% earnings decline under new accounting standards and a weaker than expected performance for CHEP Americas, due to cost escalation and recovery issues. The broker trims its FY growth expectations.

But FY19 should be the nadir for CHEP, the broker suggests, with growth to accelerate beyond on the lag effect in cost recoveries, price rises, and plant automation. Despite a solid share price run-up to the result, the broker retains Buy. Target unchanged at $12.10.

Sector: Commercial & Professional Services.

Target price is $12.10.Current Price is $11.39. Difference: $0.71 – (brackets indicate current price is over target). If BXB meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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