BIL brambles industries limited

hosting an inaugural analysts tour

  1. 635 Posts.
    BIL opening the door to let the analyst in for a 'see, look and touch'. Could create some interest in BIL, which is trading not far above its 12-mth. low.
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    Ten "must ask" questions for the analysts tour
    Reason for Report: Company Update

    BIL are hosting an inaugural analysts tour of the CHEP, Cleanaway and Recall operations.

    Given the lack of access to these operations in the past, and the current debate over the timing and certainty of a recovery in earnings momentum for BIL, we have highlighted 10 "must ask" questions.
    We believe that the focus will be on the timing of a margin recovery for CHEP, but would also highlight the debate around the sustainable free cashflow of the CHEP business. Details on these issues are provided in this report.
    We also highlight the recent rally in the A$ and the obvious implications for reported A$ eps. The current spot rate for the A$ implies dilution in FY03 eps of about 6% for BIL. At this stage we have not incorporated the higher A$ into our model as we will review all assumptions post the analysts tour. Irrespective, we highlight that the currency issue is one of translation rather than structural growth.

    STRONG BUY
    Investment Opinion: B-1-1-7
    Volatility Risk: Average
    Mkt. Value/Shares Outstanding (mn): A$15,005 (US$8,551) / 1,680
    Price: A$8.93
    ML Ticker: BRMBF

    Price Objective: A$12.00
 
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