Stifel Nicolaus analyst Jacob Armstrong maintained a Buy rating on Bunzl plc (BNZL – Research Report) today and set a price target of p3,500.00.
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Jacob Armstrong has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. Bunzl plc has demonstrated resilience with a 2.6% increase in group revenue at constant exchange rates, primarily driven by acquisitions. Although the company faced a decline in adjusted operating profit, particularly in North America and Continental Europe, strategic leadership changes and a focus on operational excellence are expected to yield improvements.
Moreover, Bunzl’s capital allocation strategy, including a pause in the buyback program, aims to maintain financial stability amidst macroeconomic uncertainties. The company’s efforts in margin management and cost-saving initiatives are anticipated to enhance performance towards the latter part of the year. Despite a reduction in 2025 guidance, the potential for moderate revenue growth and improvements in operating margin in the second half of the year support the Buy rating.
In another report released on April 9, Bernstein also maintained a Buy rating on the stock with a p3,700.00 price target.