BXB – Citi rates the stock as Buy

Citi updates its US cost monitor, noting lumber prices are recovering. Softwood lumber inflation was 5.6% in January which comes as prices start to cycle the strong decline experienced in the prior corresponding half.

Meanwhile, transport inflation is receding. The broker expects CHEP Americas underlying earnings (EBIT) margins will increase by 90 basis points in the second half supported by lower inflation and automation benefits. Buy rating and $14.90 target unchanged.

Also, Citi suggests Brambles could turn out a beneficiary from an increase in inhome dining or stockpiling behaviours as consumers adjust consumption behaviours.

Sector: Commercial & Professional Services.

Target price is $14.90.Current Price is $11.99. Difference: $2.91 – (brackets indicate current price is over target). If BXB meets the Citi target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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