Brambles BXB reported 1H19 earnings which showed solid revenue growth but only a modest 2% profit growth.
EBIT from 1H19 continuing operations of US$504m.
We expect FY19 underlying profit growth to show low single digit improvement on the same time last year.
The stock looks slightly expensive at 19x and 3% yield. We’re looking for a pullback to sub $10.50 before reconsidering.
The IFCO separation remains on track for completion this year and will help underpin the share price.