UBS has surveyed European pallet customers who indicate a solid outlook for pooling volumes and the ability for poolers to pass on higher operating costs. CHEP has outperformed competition on price, quality and the availability of pallets.
Customers are anticipating a 3.5% increase in pallet prices, which is slightly lower than the survey result last year at 4.0%. UBS retains a Neutral rating and reduces the target to $12.00 from $12.10.
Sector: Commercial & Professional Services.
Target price is $12.00.Current Price is $12.18. Difference: ($0.18) – (brackets indicate current price is over target). If BXB meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).