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JPMorgan upgrades Bunzl, hikes price target

By Michele Maatouk

Date: Monday 13 Mar 2023

JPMorgan upgrades Bunzl, hikes price target

(Sharecast News) - JPMorgan Cazenove upgraded Bunzl on Monday to 'overweight' from 'neutral', lifted the price target to 3,375p from 3,250p and placed the shares on 'positive catalyst watch' into the first-quarter trading update on 26 April.
JPM said that following the company's FY22 results and London roadshow, it is re-vising the story as it finds itself positive for 2023 relative to its wider sector. The bank highlighted three key positives.

"1) Pricing remains positive, particularly into H1-23, but also likely for 2023 overall, in our view," it said.

"2) Leverage finished 2022 at a record-low level, 1.2x under the covenant definition (1.7x including leases and deferred M&A consideration). 3) The valuation has normalised relative to the market and we see some upside, catalysed by earnings momentum."

In its 2023 estimates, JPM is 4% above company-compiled consensus at EBITA and EPS. Compared to current Bloomberg consensus EPS, JPM is 3% above.


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