The Brambles Limited (ASX: BXB) share price has 16% upside plus dividends if the analysts at Goldman Sachs are on the money. On October 21 Goldman's slapped a buy rating and $14.10 12-month share price target on the pallets provider.
Why does Goldman like Brambles?
According to an October 21 note out of its research desk Brambles shares are undervalued after it provided a better-than-expected trading update for Q1 FY 2020. Over the quarter Brambles delivered 5% top line growth after successfully negotiating higher prices with its customers.
According to Goldman: "This should provide a greater degree of revenue resilience to a near term slowdown in volumes and, in combination with subsiding cost pressures and incoming automation benefits, we expect FY20 earnings to be supported."
The analysts also reference how Brambles is sticking to mid-single digit revenue growth over FY 20 with "underlying profit growth to be in line with or slightly above sales revenue growth, on a constant currency basis."
Moreover, Goldman's points out Brambles is also undertaking a $1.65 billion buyback while offering a 2.5% dividend yield on trailing dividends of 31.5 cents per share.
Other industrial businesses worth a look include Amcor Limited (ASX: AMC) or Pact Group Holdings Ltd (ASX: PGH).
