Update shared on 05 Nov 2025
Fair value Increased 1.02%Analysts have marginally raised their price target for Brambles from A$25.07 to A$25.33. They cite continued strong performance and note that the recent share price rally has reduced the stock’s potential return.
Analyst Commentary
Recent research coverage has provided insight into both the strengths and potential risks facing Brambles at its current valuation. Analysts are weighing robust fundamentals against a rallying share price and moderating return prospects.
Bullish Takeaways
- Strong demand for offshore-exposed operators supports ongoing earnings resilience and positions Brambles as a standout in its sector.
- Upward revisions to the price target reflect confidence in the company’s execution and long-term strategic opportunities.
- The firm’s premium quality and defensive characteristics have continued to attract investor interest, even amid limited forecast upgrades.
Bearish Takeaways
- The recent share price rally appears decoupled from underlying forecast changes, leading to concerns regarding stretched valuation.
- Total return projections have turned negative at higher price targets, indicating less potential upside for new investors.
- The scarcity premium for high-quality stocks may have inflated prices beyond reasonable growth expectations. This introduces downside risk if sentiment shifts.
What's in the News
- JPMorgan downgraded Brambles to Neutral from Overweight with a revised price target of A$24.50. The decision was based on a share price rally that outpaced any substantial forecast upgrades and led to a negative total return outlook (JPMorgan).
- The Board of Directors approved a new buyback plan on August 21, 2025, authorizing the repurchase of up to 136,699,305 shares, or 10% of issued shares, for $400 million. This plan is valid until June 30, 2026.
- Brambles confirmed earnings guidance for the fiscal year ending June 30, 2026, expecting sales revenue growth of 3-5% and underlying profit growth of 8-11% at constant currency.
- A cash dividend of USD 0.2083 per share was announced for the six months ended June 30, 2025, payable on October 8, 2025.
Valuation Changes
- Consensus Analyst Price Target: Risen slightly from A$25.07 to A$25.33.
- Discount Rate: Decreased marginally from 6.72% to 6.69%.
- Revenue Growth: Edged up from 4.50% to 4.52%.
- Net Profit Margin: Improved modestly from 14.57% to 14.58%.
- Future P/E: Fallen significantly from 35.4x to 23.1x. This reflects a lower valuation multiple on projected earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.