Risk Reward Update

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

August 20, 2026 01:31 PM GMT

Morgan Stanley Australia Limited+

Brambles Ltd. | Asia Pacific

Joseph Michael, CFA

Equity Analyst

Risk Reward Update

What’s Changed

Brambles Ltd. (BXB.AX)

From

To

Bull Case

A$25.00

A$26.00

Bear Case

A$11.00

A$11.40

Updated Components

Brambles Ltd. (BXB.AX, BXB AU)

EPS

Australia Transportation | Australia

Bull Base Bear Scenarios

Stock Rating

Industry View

Price target

Shr price, close (Aug 20, 2026)

52-Week Range

Risk Reward for Brambles Ltd. (BXB.AX) has been updated

Reason for change: We update our model following the FY26 result.

What are our forecast changes? Our EBIT forecasts decrease 4% on average across

FY27-28. We forecast 3% EBIT growth in FY27 in constant currency, in-line with

management guidance.

How does this affect valuation? Our price target is unchanged at A$19.00/share,

Fiscal Year Ending

EPS (US$)**

Prior EPS (US$)**

Equal-weight

In-Line

A$19.00

A$18.80

A$26.93-16.18

06/26 06/27e 06/28e 06/29e

0.70

0.68

0.73

0.80

0.83

0.86

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

equally weighted between: 1) P/E (A$18.30 from A$17.90 previously) – We use a P/E

multiple of 18.1x applied to FY27e EPS (from 17.1x). These multiples represent a 25%

discount to the ASX200 ex Financials index, which we think is appropriate given

BXB recent trading performance. 2) DCF (A$19.40 from A$21.00 previously) –

WACC 8.3% (unchanged).

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investors should be aware that the firm may have a conflict of

interest that could affect the objectivity of Morgan Stanley

Research. Investors should consider Morgan Stanley

Research as only a single factor in making their investment

decision.