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    BXB   AU000000BXB1

BRAMBLES LIMITED

(BXB)
  Report
Delayed Australian Stock Exchange  -  02:10 2022-09-26 am EDT
11.58 AUD   -0.77%
09/14Brambles Limited Announces Company Address Changes
CI
09/07BRAMBLES LIMITED : Ex-dividend day for final dividend
FA
08/19UBS Adjusts Brambles' Price Target to AU$14.10 From AU$13.70, Keeps at Buy
MT
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Australia's Brambles shares jump after dropping plastic pallet investment

06/30/2022 | 11:30pm EDT
FILE PHOTO: Forklift operator load pallets onto truck at Brambles-owned CHEP pallet depot in Sydney

(Reuters) - Shares of Brambles Ltd rose to their highest in almost seven weeks on Friday, as investors cheered a decision by the Australian firm to scrap investment in a plastic pallets project that it said would have yielded lower-than-desirable returns.

The supply chain logistics company late on Thursday cancelled its investment in plastic pallets for customers who supply to U.S. big-box retailer Costco Wholesale Corp after failing to agree on pricing and commercial terms.

Brambles had said last year it would invest in Costco's shift to plastic pallets only if return on capital invested (ROCI) was more than 15%.

On Thursday, Brambles said Costco and its suppliers were unwilling to agree on terms that would help it meet that target, even though the cost of plastic pallets has jumped 50% since September.

Shares of Brambles surged as much as 7.4% on Friday and were set for their best day since mid-May, as the company's strict adherence to cost control swayed sentiment more than the loss of the project.

"We view the decision as a positive. Investment in the plastic pallet pool for Costco would have required a material increase in capex while also bringing added execution risk," Morgan Stanley analysts wrote in a note. "We believe that the decision not to proceed with plastics is a best case scenario."

Analysts at UBS said while the overhang of potentially losing Costco volumes may be viewed negatively, it does not change their expectation of substantial free cash flow recovery in the 2023 and 2024 fiscal years.

"Brambles stuck to their capital discipline... Private equity is more likely to stay interested given lower committed capex," they wrote.

Shares of Brambles, which was recently a takeover target of European private equity firm CVC Capital Partners, were up 3.8% at A$11.12, as of 0232 GMT, while the broader market rose 0.5%.

(Reporting by Shashwat Awasthi; Editing by Subhranshu Sahu)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BRAMBLES LIMITED -0.77% 11.58 Delayed Quote.9.78%
COSTCO WHOLESALE CORPORATION -4.26% 466.4 Delayed Quote.-17.84%
MORGAN STANLEY -3.85% 81.51 Delayed Quote.-16.96%
All news about BRAMBLES LIMITED
09/14Brambles Limited Announces Company Address Changes
CI
09/07BRAMBLES LIMITED : Ex-dividend day for final dividend
FA
08/19UBS Adjusts Brambles' Price Target to AU$14.10 From AU$13.70, Keeps at Buy
MT
08/17BRAMBLES : DRP Letter to Shareholders
PU
08/16Brambles' Net Profit Jumps 18% in FY22; Shares Jump 5%
MT
08/16Australia shares flat as miners offset CSL drag, NZ falls ahead of rates decision
RE
08/16Brambles Shares Rise Despite Cost, Supply-Chain Uncertainty
DJ
08/16Brambles Limited Provides Sales Guidance for the Fiscal 2023
CI
08/16TRANSCRIPT : Brambles Limited, 2022 Earnings Call, Aug 17, 2022
CI
08/16FY22 RESULT : Strong earnings performance despite significant input-cost inflation and cha..
PU
More news
Analyst Recommendations on BRAMBLES LIMITED
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Financials (USD)
Sales 2023 5 942 M - -
Net income 2023 619 M - -
Net Debt 2023 2 486 M - -
P/E ratio 2023 17,3x
Yield 2023 3,25%
Capitalization 10 588 M 10 588 M -
EV / Sales 2023 2,20x
EV / Sales 2024 2,10x
Nbr of Employees 12 000
Free-Float 99,7%
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Technical analysis trends BRAMBLES LIMITED
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Last Close Price 7,64 $
Average target price 8,91 $
Spread / Average Target 16,6%
EPS Revisions
Managers and Directors
Graham Andrew Chipchase Chief Executive Officer & Director
Nessa Ita O'Sullivan Chief Financial Officer-Designate
John Patrick Mullen Non-Executive Chairman
Rodney Hefford Chief Information Officer
Enrique Montanes Garcia Chief Operations Officer
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