Brambles (BXB) Technical and Fundamental Analysis

Submitted by Share Trading on 7 April, 2008 - 12:31

Brambles (BXB) has an Outperform recommendation and a $12 share price target from Australian stockmarket analysts Macquarie Research.

Brambles BXB: Breaking Out

Brambles (BXB) - Outperform

Current Price: $10.42
Target Price: $12.00 (~15% Upside)
P/E: 20.4 X
Div Yield: 3.3% (46% Franked)

Brambles (BXB) Technical Analysis

Brambles looks to have broken out to the upside after forming solid sideways pennant pattern of recent times. This technical viewpoint only acts to support Macquarie Research Equities (MRE) solid fundamental view of BXB.

Macquarie Research Equities (MRE) Fundamental View of Brambles (BXB)

1. BXB has suffered greatly in recent times in MRE’s view as a result of the overhang caused by the sale of AIO’s stake. With the AIO stake confirmed as having been fully closed out we believe a major potential headwind has been removed from BXB’s path.
2. Continued US momentum on the back of new customer wins could be a significant catalyst for BXB despite talk of a US slowdown.
3. The strong 1H08 result reinforced the notion of BXB as a defensive stock with CHEP America’s and Europe both delivering results that belied any slowing in the global economy.
4. 75% of BXB’s underlying earnings exposure is to the defensive sectors where volume is more resilient to economic downturns.