Report
Adam Fleck
EUR 101.80 For Business Accounts Only

Brambles Shifts Focus to Core Pooling Businesses (Corrected)

We lower our fair value estimate to AUD 11.20 per share from AUD 11.60 for wide-moat Brambles following fiscal 2017 results. While results were a little softer than anticipated, we’ve largely maintained our long-term assumptions, and are encouraged by management’s decision to divest its CHEP Recycled division and focus on Brambles’ core pooling businesses.
Brambles remains undervalued, in our view, with shares trading at a 14% discount to our revised fair value estimate. We believe the market is...
Underlying
Brambles Limited

Brambles is a supply-chain logistics company operating primarily through the CHEP and IFCO brands. Co. has three segments: Pallets segment, which primarily serves the consumer goods, fresh produce and beverage industries, and sub-divided into three regions: Americas, Europe, Middle East and Africa, and Asia-Pacific; Reusable Plastic or Produce Crates segment, which serves the fresh produce and food industry and comprising the IFCO RPC pooling business worldwide and the CHEP RPC pooling businesses in Australia, New Zealand and South Africa; and Containers segment, which comprises four business units: Automotive, Intermediate Bulk Containers, Oil and Gas, and Aerospace.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Adam Fleck

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