Brambles reported 1Q FY19, which guided towards flat 1H EBIT growth.
With the stock trading 16 x earnings and 3% yield, we believe there is only limited upside to the share price in the short-term.
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The attractive story here is the upcoming spin-off of the plastic pallet pooling business. We expect this to go to a shareholder vote and be finalized early next year.
Buy BXB and sell covered call options to enhance the yield.
Brambles
