Bunzl (BNZL)

Sector:

Retailers

Index:

FTSE 100

3,412.00p
   
  • Change Today:
    -20.00p
  • 52 Week High: 3,714.00p
  • 52 Week Low: 2,875.00p
  • Currency: UK Pounds
  • Shares Issued: 334.63m
  • Volume: 789,888
  • Market Cap: £11,418m
  • RiskGrade: 114

JPMorgan upgrades Bunzl to 'overweight'

By Michele Maatouk

Date: Monday 14 Oct 2024

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove upgraded Bunzl on Monday to 'overweight' from 'neutral' and lifted the price target to 3,980p from 3,660p as it increased its medium-term underlying margin assumptions to reflect greater confidence in a positive trajectory.

The bank relaunched coverage of Bunzl in March with a 'neutral' rating, even as it wrote that Bunzl was "fundamentally more attractive than it was five years ago" given structurally higher margins.

JPM said its concerns were around any unwind of inflation benefits within margins and negative-for-longer volumes.

"Bunzl's 1H24 update showcased the work that has gone 'under the hood' at the company on margins, supplemented by a clear capital allocation policy," it said.

"The key new information for us has been the clear upside to the North American margin from higher own brand penetration within Grocery and Foodservice (40% of group revenue, mid single digit percent upside to group EBITA), as over the past year Bunzl has secured manufacturing lines with suppliers."

JPM noted that Bunzl is trading on a 16.5x 2025 estimated price-to-earnings, near its median P/E relative to the market, and below its median in absolute terms. It also said the stock offers a 6% free cash flow yield.

"With EPS growth possibly in the 10-15% range per annum at least over the next three years (3% organic growth, 1% from margin accretion, 2% from buybacks and mid single digit % from M&A), we see upside to the valuation," it said.

At 1000 BST, the shares were up 1.7% at 3,524p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Bunzl Market Data

Currency UK Pounds
Share Price 3,412.00p
Change Today -20.00p
% Change -0.58 %
52 Week High 3,714.00p
52 Week Low 2,875.00p
Volume 789,888
Shares Issued 334.63m
Market Cap £11,418m
RiskGrade 114

Bunzl Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.84% below the market average96.84% below the market average96.84% below the market average96.84% below the market average96.84% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
59.86% above the market average59.86% above the market average59.86% above the market average59.86% above the market average59.86% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Income
65.73% below the market average65.73% below the market average65.73% below the market average65.73% below the market average65.73% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
40.54% below the market average40.54% below the market average40.54% below the market average40.54% below the market average40.54% below the market average
Sector averageSector averageSector averageSector averageSector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 8
Sell 4
Strong Sell 2
Total 18
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Bunzl Dividends

  Latest Previous
  Interim Final
Ex-Div 14-Nov-24 16-May-24
Paid 03-Jan-25 02-Jul-24
Amount 20.10p 50.10p

Trades for 31-Oct-2024

Time Volume / Share Price
16:36 191 @ 3,412.00p
16:36 1,300 @ 3,412.00p
16:35 250 @ 3,412.00p
16:35 19,429 @ 3,412.00p
16:35 8,351 @ 3,412.00p

Bunzl Key Personnel

CFO Richard Howes
Chair Peter Ventress

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