DAVY VIEW

Bunzl has been very strong over the last two months as the market appears to have begun to understand the potential for the Hygiene-oriented operations, and it has also benefited from small earnings upgrades and a more defensive stance from some investors. We have been extremely positive on the Hygiene potential, but the stock is up 15% since the beginning of Q2 (and up 17% in the last six weeks) and now trades 5% above Q1 2019 and at an all-time high. This leaves us seeing little potential outperformance at this point; we therefore move from ‘Outperform’ to ‘Neutral’.