Balanced Outlook on Bunzl: Solid Cash Generation and Acquisition Pipeline Offset by Modest Growth and Margin Pressure

Morgan Stanley analyst Annelies Vermeulen maintained a Hold rating on Bunzl plc today and set a price target of p2,550.00.

Annelies Vermeulen has given his Hold rating due to a combination of factors, including Bunzl’s results largely matching prior guidance and market expectations. Revenue growth was modest, underlying growth only slightly positive, and margins compressed versus last year, even though the decline slowed in the second half and fourth-quarter trading in more seasonal areas improved.

At the same time, cash generation remained strong, leverage is manageable, and the acquisition pipeline looks encouraging, with further deals expected into 2026. With FY26 guidance pointing to only moderate revenue growth and slightly lower margins, and no major change anticipated to consensus forecasts, the risk‑reward profile appears balanced, leading Vermeulen to maintain an Equal-weight (Hold) stance.

According to TipRanks, Vermeulen is a 2-star analyst with an average return of 0.8% and a 50.79% success rate. Vermeulen covers the Industrials sector, focusing on stocks such as Ferguson PLC, Diploma, and Experian.