Goldman Sachs upgraded Brambles Ltd. (ASX:BXB) to Neutral from Sell on Tuesday, setting a price target of AUD19.34, down from AUD20.95. The stock fell 17% over the past week to $26.15, near its 52-week low of $25.50.
Bond.az analysis shows the stock appears undervalued at current levels with a Fair Value of $32.76. The company announced two subcontractors exited its plant network, affecting logistics and repair capacity.
Management said the operations were non-core for the subcontractors. Goldman Sachs believes their economics would have been marginal as labor and regulatory constraints intensified.
The disruption created a $60 million headwind to earnings in Q4 FY2026. Brambles cut its revenue growth guidance to 2.5% from 3.5% and earnings growth guidance to 4% from 9.5%.
