Brambles Industries (BIL) Stock Trading Tip

Brambles Industries (BIL) has a share price target of $15.20 from stock analyst UBS. Their DCF valuation remains at $14.30 which places Brambles on a 10 percent premium to the average FCF multiple of the Australian All Industrials Their price target is a 12 month forward DCF. UBS notes that " We have changed our forecasts to reflect only US$926m being deployed via the cash alternative, and a further US$1.3bn being used for an on-market buyback until June 2007. Lower net interest is offset by higher average share count making these changes immaterial to EPS." " Given the combination of strong cash generation and 10%pa growth in EBIT, we estimate Brambles could afford to deploy an additional US$1.5bn in FY08 and US$0.6bn pa thereafter, and still keep its EBITA interest cover above 6x. Given recent private equity activity, we believe this issue will be very front of mind for management." Brambles will be trading under the ticker of BXB from 27th November and will trade under a deferred settlement bases. UBS estimates a market cap of A$20bn at the current price, which will lift its ASX200 index weighting from 1.2% to 1.9%.

Brambles Industries Limited is listed on the Australian Stock Exchange (ASX) under stock code BIL. You can view their investor website here. Brambles was listed on the ASX on 30 June, 1962. Brambles (BIL) is involved in pallet and container pooling; information management; waste management and recycling; support services to heavy industries; dynamic storage rack services and specialised tank containers. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Here is a recent Brambles recommendation. Check your charts and good luck with your share trading!