RBC Capital Markets hikes price target on Brambles
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The news: Brambles shares edged higher on the ASX after RBC Capital Markets upgraded its price target on the logistics company.
The numbers: Brambles shares were up 0.2% to $18.90 by 3pm AEDT, having risen nearly 40% since January.
RBC retained its 'outperform' rating on the stock and hiked its price target 13% from $19.25 to $20.75.
The context: RBC analyst Owen Birrell said that in a call following Brambles' 2024 investor day, the company's CEO Graham Chipchase re-emphasised the improved resilience of the business to market volatility and how this was translating to more defensible cashflow generation and shareholder returns.
The investor day saw Brambles reiterate its FY25 guidance and provide FY26 to FY28 growth targets, including a pre-dividend free cash flow floor of USD750 million ($1.11 billion).
What they said: "Despite the recent stock outperformance, we believe the earnings risk remains to the upside and remain outperform rated," Birrell said.
The source: RBC Capital Markets research
