Australia's Brambles recovers slightly after 20% rout on profit outlook cut

Brambles

19/05/2026 04:59

Updates

** Shares of Australia's Brambles BXB.AX rise 1% to A$17.79, but hover near recent two-year lows

** Stock dropped more than 20% in the previous session after the logistics firm cut its FY26 underlying profit growth on constant-currency basis to 3%-5% vs previous outlook 8%-11%

** Company cites repair-capacity constraints in the U.S. due to labour shortages, others

** Morgan Stanley sees these headwinds as cyclical, with pricing offsetting any pressure over time

** Brokerage finds the improved demand flagged by the company "encouraging"

** Jefferies cuts PT to A$19.55 from A$21.02, noting that the view of Brambles as a business with highly  predictable and stable earnings growth has now changed

** Stock down 23.2% YTD, as of last close

 (Reporting by Nikita Maria Jino and Sneha Kumar in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))