Brambles Limited (ASX:BXB) released its earnings last week and analysts raised their price target to AU$18.10

Shareholders of Brambles Limited (ASX:BXB) will be pleased this week as its share price rose 17% to AU$18.03 following the release of its latest annual results. The result was overall positive – although revenue of $6.7 billion was in line with analyst forecasts, Brambles surprised with statutory profit of $0.56 per share, slightly ahead of expectations. This is an important time for investors as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if expectations for the company have changed. With that in mind, we've compiled the latest statutory forecasts to see what analysts are expecting for next year.

Check out our latest analysis for Brambles

Following the latest results, Brambles' 15 analysts are now forecasting revenues of US$6.97 billion in 2025. This would be a modest 3.3% increase in sales compared to the last 12 months. Statutory earnings per share are expected to increase 11% to US$0.62. However, prior to the latest results, analysts had been expecting revenues of US$6.95 billion and earnings per share (EPS) of US$0.60 in 2025. So the consensus seems to have become a bit more optimistic about Brambles' earnings potential following these results.

The consensus price target rose 15% to AU$18.10, suggesting that higher earnings estimates are also impacting the stock's valuation. However, there is another way to think about price targets and that is to look at the range of price targets suggested by analysts, as a wide range of estimates could suggest a different view of possible outcomes for the company. The most optimistic Brambles analyst has a price target of AU$22.04 per share, while the most pessimistic puts it at AU$13.20. Notice the wide gap in analyst price targets? This tells us that there is a fairly wide range of possible scenarios for the underlying business.

We can also look at these estimates in the context of the bigger picture, such as how the forecasts compare to past performance, and whether the forecasts are more or less optimistic compared to other companies in the industry. We'd like to highlight that Brambles' revenue growth is expected to slow. The forecast annualized growth rate of 3.3% to the end of 2025 is well below the historical growth of 7.8% per annum over the past five years. Compare this to other companies (with analyst forecasts) in the industry, which are expected to grow revenue by 4.5% per year overall. So it's pretty clear that while revenue growth is expected to slow, the industry as a whole is expected to grow faster than Brambles.

The story continues

The conclusion

The most important thing to note here is that the analysts have upgraded their earnings per share estimates, suggesting that optimism towards Brambles has increased significantly following these results. Fortunately, the analysts have also reaffirmed their revenue estimates, suggesting that they are in line with expectations. However, our data suggests that Brambles' revenue is expected to underperform the wider industry. We note an increase in the price target, suggesting that the analysts believe that the company's intrinsic value is likely to improve over time.

Continuing with this thought, we believe the company's long-term prospects are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Brambles out to 2027, and you can see them free on our platform here.

You still have to keep an eye on risks, for example Brambles 2 warning signs In our opinion, you should be aware of this.

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.