ASX industrials stock Brambles Ltd (ASX: BXB) has been on a roll in 2025.
It is the world's largest supplier of reusable wooden pallets and crates used for storing and transporting goods.
Brambles operates in more than 60 countries, primarily under the Chep brand. The company touts itself as a pioneer of the 'sharing economy', managing a reusable pool of pallets and containers to service global supply chains and logistics.
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Stock price continues to soar
At the start of 2025, this ASX industrials stock was trading under $20 per share.
Since then, it has risen an impressive 35%.
For context, the S&P/ASX 200 Industrials Index (ASX:XNJ) is up 12.8% in the same period.
It closed yesterday at a fresh record high of $26.34
This rise included a 10% jump in one day on the back of earnings results news.
Brambles reported a 3% lift in sales revenue from continuing operations to US$6,669.7 million and a 13% jump in operating profit after tax from continuing operations to US$864.2 million.
It also projects an underlying profit growth at constant FX rates of 8-11%.
Can the run continue for Brambles shares?
After a strong year of returns for this ASX industrials stock, it appears brokers believe its current share price already reflects the company's upside.
The team at Morgans upgraded the price target for Brambles Ltd shares, but lists the stock as a hold.
The broker said BXB delivered a solid FY25 result despite a challenging macroeconomic environment, particularly in the US.
We increase FY26-28F underlying EBIT by between 5-7%. We raise our target price to $25.70 (from $19.75), reflecting updated earnings forecasts and a higher PE-based valuation multiple of 24x (up from 19.5x).
This uplift reflects our increased confidence in management's ability to drive sales growth through new business wins and continued margin improvement via efficiency gains. With a 12-month forecast TSR of 2%, we move to a HOLD rating (from TRIM).
If Brambles Ltd shares were to reach this price target of $25.70, it would mean a drop of 2.43%.
The broker did say it may adopt a more positive stance should the share price pull back.
Elsewhere, broker Bell Potter has a similar view. It currently has a "hold" rating and price target of $25.08.
