Credit Suisse has downgraded Brambles (BXB) to Neutral from Outperform following the pallet supplier's recently announced spin-off of its Recall business

Credit Suisse has downgraded Brambles (BXB) to Neutral from Outperform following the pallet supplier's recently announced spin-off of its Recall business. The price target has been increased to $10.00 (from $9.82). The broker views this as a good move, noting that management will be less distracted and capable of focusing on core activities. Although Credit Suisse believes BXB is the highest quality stock in the transport space, the stock is expensive and has been downgraded to Neutral after a strong run on the share price following the news.