Contact us Find us Register
Back to previous section

RBC Capital upgrades Bunzl to ‘sector perform’.

RBC Capital Markets upgraded Bunzl on Thursday to ‘sector perform’ from ‘underperform’ and lifted the price target to 3,350 from 2,700p as revenue headwinds ease.

  • Bunzl
  • 29 August 2024 10:42:42
Bunzl

Source: Sharecast

"After a period of deflation-linked underperformance, we raise our rating to SP to reflect, principally, a brighter revenue and margin outlook, confidence around M&A execution and a new capital allocation strategy which we think widens the investor audience," RBC said.

The bank said the price target increase reflects the value of future M&A.

RBC also said it was lifting its FY24 and FY25 earnings per share estimates by around 2% and 4%, respectively, to reflect stronger assumed margin progression, incremental M&A and around £450m of planned share buybacks.

"Though we believe BNZL will remain a 'sleep tight at night' stock for longer-term investors, we currently prefer DCC and RS1 in the B2B distribution sub-sector," it said.

At 1040 BST, the shares were up 1.6% at 3,516p.

FTSE 100 ( UKX )

ISIN: N/A
Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: 1.95 ( 0.02 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.