Bunzl plc

Valuation upside no longer clear after strong run

  • Sectors : Business Support Services
  • Companies : Bunzl plc

Ratings and price correct at time of issue.

  • Bunzl plc

    Closing Price: 2664p

  • RATING 06/08/21

  • PREVIOUS RATING 01/04/21



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’.

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Aug 6 2021, 06:55 IST/BST