BMBLF - Brambles: Digital Transformation And Capital Management Are Key Value Drivers (Rating Upgrade)

2024-03-25 07:56:20 ET

Summary

• Brambles' FY 2024 earnings growth guidance was better than what it previously targeted at its 2021 Investor Day, thanks to its success with digital transformation.
• A higher dividend payout ratio could be one of the potential changes that the company makes to its future capital management policy.
• My rating for Brambles stock is revised to a Buy, as I think that the stock's valuations haven't factored in the key positives for the company.

Elevator Pitch

I rate Brambles Limited ( OTCPK:BMBLF ) ( OTCPK:BXBLY ) [BXB:AU] as a Buy.

My earlier March 11, 2021 initiation article highlighted that pallet supplier Brambles was a beneficiary of "Work-From-Home" or WFH tailwinds during the pandemic, and I also touched on the company's interim results and full-year outlook in that write-up....

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