Bunzl plc, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Jacob Armstrong from Stifel Nicolaus reiterated a Hold rating on the stock and has a p2,600.00 price target.
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Jacob Armstrong has given his Hold rating due to a combination of factors affecting Bunzl plc. The company’s recent Q3 trading update indicated a slight revenue growth of 0.6% at constant currency, with underlying revenue rising by 0.4%. This growth, although modest, aligns with the company’s revised expectations amidst challenging market conditions. Additionally, net acquisitions contributed positively to growth, but fewer trading days had a negative impact on revenue.
Despite these challenges, Bunzl’s full-year guidance remains unchanged, with expectations for moderate revenue growth and an operating margin slightly below 8%. The company has also completed a significant portion of its share buyback program, which is expected to result in leverage just over 2x by year-end. However, internal execution issues and broader macroeconomic pressures, such as deflation and tariff volatility, contribute to a cautious outlook. These factors, combined with the company’s earlier profit warning, justify the Hold rating as the market absorbs these developments.
According to TipRanks, Armstrong is ranked #3955 out of 10041 analysts.
In another report released on October 16, TR | OpenAI – 4o also downgraded the stock to a Hold with a p2,614.00 price target.