Think we better pass the hat around for Deutsche analyst Cameron McDonald who maintained a bullish buy recommendation on Brambles stock in a research note issued on Friday. "We believe that if the company strategy remains intact then the stock should trade at a premium to its long-term average multiple. We also remain attracted to BXB's US exposure."
On Monday morning, Brambles issued a shock profit downgrade, the worst of which was its US exposure. "With the exception of our North American pallets business, we delivered underlying profit growth". Sounds like the Democratic National Committee in November reminding us that despite handing power to a spray-orange psycho with cabbage-smelling fingers stubby enough to operate an inbred village's Ferris wheel, it had won the US popular vote.
Still, Brambles stock closed down 15.8 per cent on Monday, $3.1 billion of value vanished into thin air (plenty of which will likely re-emerge tomorrow).
Outgoing chief executive Tom Gorman sold his entire unencumbered holding in the company on August 19, 22 and 23 last year, netting $8.4 million. How did the market miss that one?!
Brambles guidance was re-affirmed at its annual meeting in November, based on its October management accounts.
And it's only Monday...
