Brambles has continued to navigate a challenging operating environment well, suggests Morgan Stanley, with price realisation the key driver of top line growth in the 3Q. All FY24 guidance was maintained.

However, the broker points to slowing price momentum in the 3Q, as well as a slowdown in the trajectory of sales growth. Group sales revenue of US$1,591m,  was a 3% increase on the previous corresponding period.

Management noted destocking has continued in North America and Europe which resulted in an additional 3m pallet returns in the quarter.

The Equal Weight rating is maintained by the broker on a full valuation. Target $15.70. Industry View: In line.

Sector: Commercial & Professional Services.

Target price is $15.70.Current Price is $14.64. Difference: $1.06 - (brackets indicate current price is over target). If BXB meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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