The majority of brokers have reacted positively to pallet supplier Brambles' announced spin-off of its Recall business. Deutsche Bank, J.P.Morgan and Macquarie have maintained a Buy/Outperform rating, noting that management will be less distracted and capable of focusing on core activities. Brokers view Brambles as the highest-quality stock in the transport space for investors comfortable with a higher-yielding but lower growth investment. Nonetheless, Credit Suisse has downgraded Brambles to Neutral as it believes the stock is expensive after a strong run on the share price. Current consensus target price is $9.61 (last close $9.27) with consensus PER at 19.3.
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