Got this in an email todayWed, 24 Apr at 9:29 amWednesday, 24...

Got this in an email today

Wed, 24 Apr at 9:29 am

Wednesday, 24 April 2024

BXB - BRAMBLES LIMITED

Macquarie rates BXB as Outperform (1) - Brambles reiterated guidance at its update of 13-15% constant-currency earnings growth, but Macquarie has lowered its expectation to 13% from 14%.

Price was a driver of first half earnings growth but this diminished significantly in the March Q. Destocking in pool and white pallets limits organic growth, the broker notes.

The positive of the destocking cycle is the release of pallets saves on capex demands, Macquarie points out, improving cycle times and improving loss ratios thus Brambles' reiteration of the 8-10pts improvement in capex to sales, and strength in margins.

Outperform and $16.25 target retained,

Target price is $16.25 Current Price is $14.64 Difference: $1.61 If BXB meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges). Current consensus price target is $15.44, suggesting upside of 5.5%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 45.68 cents and EPS of 80.40 cents . At the last closing share price the estimated dividend yield is 3.12%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.21. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.1, implying annual growth of N/A. Current consensus DPS estimate is 49.3, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 53.75 cents and EPS of 91.21 cents . At the last closing share price the estimated dividend yield is 3.67%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.05. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.1, implying annual growth of 11.0%. Current consensus DPS estimate is 55.8, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 14.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.2All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources