Update shared on22 Aug 2025
Fair value Increased 14%Brambles' price target has been upgraded primarily due to its scarcity value as a high-quality offshore-exposed operator and a reassessment of valuation, though analysts are now more cautious given the elevated share price and limited further upside, resulting in the consensus price target rising from A$22.06 to A$24.85.
Analyst Commentary
- Strong share price rally despite results not significantly exceeding forecasts.
- Upgrade in price target reflects reassessment of valuation due to scarcity of high-quality offshore-exposed operators.
- Elevated current share price leads to a negative total return forecast at the new target price.
- Downgrade to Neutral is driven by limited further upside from current levels.
- Cautious outlook due to stock trading above what revised fundamentals justify.
What's in the News
- JPMorgan downgraded Brambles to Neutral from Overweight despite raising the price target to A$24.50, citing a “remarkable” share price rally that outpaced modest results and now implies a negative total return at the revised target (Periodicals).
- Brambles announced a new share buyback plan approved by the Board on August 21, 2025, allowing repurchase of up to 136.7 million shares, or 10% of its issued share capital, valid through June 2026 (Key Developments).
- The company provided fiscal 2026 guidance, projecting constant-currency sales revenue growth of 3-5% and underlying profit growth of 8-11% (Key Developments).
- Brambles declared a semiannual cash dividend of USD 0.2083 per share, payable October 8, 2025, for the period ended June 30, 2025 (Key Developments).
- Brambles was added to the S&P/ASX 20 Index and reported having repurchased 29.9 million shares (2.16% of shares outstanding) for AUD 597.11 million under previous buyback authorizations (Key Developments).
Valuation Changes
Summary of Valuation Changes for Brambles
- The Consensus Analyst Price Target has significantly risen from A$22.06 to A$24.85.
- The Future P/E for Brambles has significantly risen from 22.36x to 35.28x.
- The Consensus Revenue Growth forecasts for Brambles has significantly risen from 3.8% per annum to 4.6% per annum.
Disclaimer
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