RBS Australia 07/05/2010 3 Hold $7.42 4.1%Target $7.42 (was...

RBS Australia 07/05/2010 3 Hold $7.42 4.1%

Target $7.42 (was $7.59). The latest trading update form the company showed business conditions have stabilised, though the broker notes there are still few signs of any significant growth.

Ongoing weakness in CHEP US sees the broker trim its earnings estimates, the changes meaning a slight reduction in price target.

With better opportunities elsewhere in the sector the broker retains its Hold rating on the stock.

Target price is $7.42 Current Price is $7.13 Difference: $0.29
If BXB meets the RBS Australia target it will return approximately 4% (excluding dividends, fees and charges).



Citi 07/05/2010 3 Hold, Medium Risk $6.80 - 4.6%

Citi analysts weren't really surprised by the company's nine months market update, though they are mentioning some minor negatives in today's research update. Overall, however, they remain firm believers in that FY11 will bring the anticipated recovery. On the other hand, they also believe the stock's valuation is far from compelling.

To add to their cautious stance, the analysts believe the recovery in CHEP volumes will be a slow process. Regarding Europe, they are suggesting the recovery story might be pushed out to 2012 rather than 2011.

Management's guidance was in line with expectations. No changes have been made.

Target price is $6.80 Current Price is $7.13 Difference: minus $0.33 (current price is over target).
If BXB meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).



BA-Merrill Lynch 07/05/2010 3 Neutral, Medium Risk $7.10 - 0.4%

March quarter numbers showed disappointing margins in the broker's view and to reflect this it has lowered its earnings estimates through to FY12.

The changes don't impact on its price target and with the stock not offering exceptional value at present in its view there is no change to the broker's Neutral rating on the stock.

Target price is $7.10 Current Price is $7.13 Difference: minus $0.03 (current price is over target).
If BXB meets the BA-Merrill Lynch target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
UBS 07/05/2010 1 Buy $8.00 12.2%

While the latest trading update shows sales are recovering, the broker says margins are taking longer.

Slower recovery in Americas margins and a weaker euro see


UBS lowering its FY10 earnings forecasts by 10% and FY11 by 8%.

However, the broker likes Brambles longer term, despite the stock trading at a full 17x FY11 earnings, which falls to 15x if the temporary fast track pallet quality costs are removed.

Target falls 40c to $8.00.

Target price is $8.00 Current Price is $7.13 Difference: $0.87
If BXB meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).


Deutsche Bank 07/05/2010 3 Hold $7.05 - 1.1%

Brambles indicated at is update FY10 revenues on constant currency are likely to be flat from FY09, suggesting a slower rate of recovery in the US than expected. The broker is not fazed, noting US manufacturing data has been strong and retail sales also strong suggesting re-stocking is ahead.

In the meantime the broker has slightly reduced earnings and dropped its target from $7.25 to $7.05.

Target price is $7.05 Current Price is $7.13 Difference: minus $0.08 (current price is over target).
If BXB meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).