BXB – Morgans rates the stock as Add

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging 72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of 75.5 cents in the second half. The analysts also forecast an average rate of 79 cents in FY22 and 78 cents in FY23, with a long-term rate of 74 cents.

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

Despite a lower US dollar having a positive impact on earnings forecasts for Brambles,  when translated into Australian dollars this has been more than offset.

The company remains one of Morgans key picks in the large-cap space due to a global leading market position and strong defensive characteristics.

The broker continues to see the valuation as attractive and maintains an Add rating. The US$1.65bn on-market buyback should also provide ongoing support for the share price. The target price falls to $11.90 from $12.16.

Sector: Commercial & Professional Services.

 

Target price is $11.90.Current Price is $10.68. Difference: $1.22 – (brackets indicate current price is over target). If BXB meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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