Brambles probably needs to increase investment in new pallets to improve the quality of its rental pools in the U.S. and Europe, Jefferies analysts warn. They tell clients in a note that the average age of Brambles' CHEP-branded pallets is rising, which typically results in increased rates of damage and more need for repairs. The analysts think that higher plant and repair costs should be largely recovered from customers over the next few years, but see also see higher capital expenditure as necessary to reverse increases in pool age. Jefferies keeps a hold rating on the stock and lowers its target price 6.8% to 18.22 Australian dollars. Shares are down 1.9% at A$19.46. (stuart.condie@wsj.com)