Bunzl plc: Strategic Acquisitions Amid North American Challenges Justify Hold Rating

Jacob Armstrong, an analyst from Stifel Nicolaus, maintained the Hold rating on Bunzl plc (BNZL – Research Report). The associated price target was lowered to p2,600.00.

Jacob Armstrong’s rating is based on a combination of factors including Bunzl plc’s recent acquisitions and current market challenges. While the company’s valuation appears reasonable, Bunzl is currently facing difficulties in its North American operations, which are affecting investor sentiment in the short term. Additionally, the suspension of the company’s share buyback program has removed a layer of support for the stock price.
Despite these challenges, Bunzl’s recent acquisitions in Chile and the Netherlands are strategic moves that could enhance its market position in the long run. The entry into the Chilean healthcare market and expansion in the Netherlands are seen as positive developments. However, the immediate market headwinds and operational issues in North America necessitate a cautious approach, justifying the Hold rating at this time.

In another report released on April 24, Peel Hunt also downgraded the stock to a Hold with a p2,500.00 price target.