The halt of imports of Russian lumber has spiked lumbar costs in Europe, not only reducing the likelihood of a guidance upgrade from Brambles but driving a slight reduction to Credit Suisse’s full year earnings forecast.
Pricing of lumber for pallets reached a record high in March at 3x the historical average. Credit Suisse has downgraded full year earnings -1% for the impact of lumber pricing, and a further -1% due to the weaker euro.
The Outperform rating is retained and the target price decreases to $13.00 from $13.25.
Sector: Commercial & Professional Services.
Target price is $13.00.Current Price is $9.92. Difference: $3.08 – (brackets indicate current price is over target). If BXB meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).