Brambles' (ASX:BXB) CHEP brand's first-quarter sales performance in the EMEA region warrants concerns as it signals a continued slowdown of its revenue momentum, Jarden said in an Oct. 24 note.

Brambles reported foreign-exchange revenue growth of 3% in the first quarter of fiscal 2025. The company thus needs a "decent acceleration" in revenue growth for the rest of the fiscal year to meet its 4% to 6% foreign-exchange revenue growth guidance, Jarden said.

The investment and advisory group highlighted that CHEP EMEA's sales performance "should be the area of most concern" within its first-quarter results.

With foreign-exchange revenue growth of 1% during the period, the region signaled a continued slowdown in revenue momentum through the second half.

"Pricing momentum appears to be moderating with cost-to-serve (indexation) but we are somewhat encouraged by the EBIT margin support from 'improvements in loss rates and cycle times' seen in 1Q25," the investment group said.

It also noted that CHEP Americas continued to deliver strong revenue, although this remained driven by prices.

Jarden maintained its overweight recommendation on Brambles and left its target price at AU$17.90.