The S&P/ASX 200 Industrials (ASX:XNJ) sector has been a strong investment over the past year.
During FY25 the index rose more than 20%.
The three largest companies by market capitalisation in this sector all contributed to the rise:
- Transurban Group (ASX: TCL) is up 5.69% in the last year
- Brambles Ltd (ASX: BXB) is up 63.43%
- Computershare Ltd (ASX: CPU) is up 49.83%
With such big returns in this span, is there still room for growth for these ASX industrials shares?
Here's what broker Bell Potter is expecting in the future.
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Transurban Group (ASX: TCL)
Transurban is one of the world's largest toll-road operators, managing and developing urban toll-road networks in Australia and North America.
Its share price has dipped by more than 6% in the last month, but remains up 5.69% over the last year.
Its share price closed last week at $13.38.
According to broker Bell Potter, the current share price places the company as fairly valued.
The broker currently has a "hold" recommendation and price target of $13.68.
However, the broker did note strong traffic recovery in North America and improved EBITDA margins position Transurban favourably.
The broker said continued investment in technology and infrastructure is expected to support growth.
Transurban Group is also expected to pay yields of 4.7% in FY 2025 and then 5% in FY 2026.
Brambles Ltd (ASX: BXB)
One of the best performing ASX 200 companies of the past year, Brambles share price lifted 63.43% over the last 12 months.
It is the world's largest supplier of reusable wooden pallets and crates used for storing and transporting goods.
After such rapid growth, it seems broker Bell Potter believes its current share price is trading above fair value.
The broker currently has a price target of $21.53 on this ASX industrials share.
From its current price of $23.42, this indicates an 8.07% downside for this ASX industrials share.
Computershare Ltd (ASX: CPU)
Computershare is an Australian financial administration company offering global services in corporate trusts, stock transfers, and employee share plans.
Its share price rose almost 50% over the last year.
Broker Bell Potter's current price target of $37.19 indicates the industrials share is overvalued right now.
From its current price of $40.83, Bell Potter expects a 8.91% decline over the next 12 months.
