Simply Wall St - May 27, 2025

Weekly Picks: 📈 PINS primed for growth and BXB keeps delivering

Plus: 💸 STG offers yield and possible upside despite headwinds...

Weekly Picks

Hey Investor,

This week’s picks cover:

📈 Why PINS could be positioned to surge from multiple tailwinds
💸 How Brambles can continue delivering as a steady compounder
⚖️ Why STG faces headwinds, but might still represent good value and yield

NYSE:PINS

Advertising innovations will ignite revenue growth

Amazon integration, advanced ad tools, and international ARPU growth will drive revenue. Margin expansion from automation and scale will boost long-term profitability.

Broke_Joe

Community Contributor

Fair Value

USD $42.6

27.5% undervalued vs current price

Based on ~11% p.a. Revenue growth for 5 years

💡 Why we like it: This thesis nails Pinterest’s unique position: high-intent users, strong ad tailwinds, and platform leverage. The author blends credible financial projections with a clear upside case, making the risk/reward feel both asymmetric and grounded.

Brambles

ASX:BXB

Revenue Set to Climb 14% with Profit Margins Following

Brambles' pallet pooling model drives stable revenue from essential global industries. Margin expansion is supported by efficient capital use, though growth remains modest due to market maturity.

Robbo

Community Contributor

Fair Value

AUD $21.9

1.1% overvalued vs current price

Based on ~14% p.a. Revenue growth for 5 years

💡 Why we like it: It’s a clear-eyed view of a durable, cash-generative business that wins by doing the basics exceptionally well. It provides a strong case for Brambles as a compounder with ESG tailwinds, stable income, and operational leverage. While trading around fair value, the 3.4% yield from dividends and buybacks would add nicely to the estimated share price growth.

Scandinavian Tobacco Group

CPSE:STG

Challenging Future as Organic Sales Decline by 8.8%

Organic sales decline reflects short-term headwinds in U.S. tobacco and supply chain. Recovery potential lies in product innovation, cost control, and easing operational disruptions.

Kapirey

Community Contributor

Fair Value

DKK 116.1

26.7% undervalued vs current price

Based on ~2.9% p.a. Revenue growth for 5 years

💡 Why we like it: This is a grounded breakdown of a company in transition. It’s clear about where the cracks are (organic sales, margins) but also where there’s still hope (cash flow, new products). The author lays it out without spin, giving investors what they need to assess the risk.

What's next?
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Simply Wall St has no position in the company(s) mentioned. These narratives are general in nature and explore scenarios and estimates created by the authors. These narrative do not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company’s future performance and are exploratory in the ideas they cover. The fair value estimate’s are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author’s analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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