Brambles (BXB) is a global logistics company that supplies and manages reusable pallets, crates and containers, primarily through its CHEP brand, to streamline supply chains for retailers and manufacturers worldwide. It’s hard to imagine a business generating $US6.7bn in revenue in FY25 from pallets, but they do own 350 million of them! We discussed the business model in detail back in November, covered here, and the numbers paint a compelling story to MM. BXB also delivered a solid set of numbers last month and looks on track to make new highs in 2026. – covered Here.
The company is not cheap, trading more than 1 standard deviation above its 5-year average, but the company is delivering growing revenue consistently from $5.6bn in 2022 to an estimated $7.1bn in 2026. This is not going to be a 10x bagger that many look for in times of turmoil, but “bargains” are thin on the ground with the ASX200 at all-time highs. BXB is a quality industrial stock, likely to grow earnings at ~10% over the next few years. We believe BXB is well positioned to continue rewarding investors.
- We can see BXB initially testing $28 in 2026, or 12-15% higher.
MM is bullish towards BXB around $25
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