RBC Lifts Price Target, Estimates for Bunzl Amid Expectations of Inflation-boosted Q2 Earnings
RBC Capital Markets updated its model for Bunzl (BNZL.L), raising its earnings estimates and price target after the British distribution and outsourcing group published its second-quarter pre-close statement. "We update our estimates post BNZL's recent encouraging Q2 trading update and revisit our price target, the prior version of which [predated] the Iran conflict and associated macro repercussions, which have been a gift to BNZL. Our EPS estimates for FY26 and FY27 both rise by a touch over 2%, mainly reflecting the positive impact of product inflation. Our [price target] rises to 2,600p [from 2,200p] mainly driven by a 100 [basis point] reduction in the assumed [weighted average cost of capital]. We retain a Sector Perform rating," analysts said Tuesday. The research firm noted that the market priced in Bunzl's ability to pass on plastic polymer cost spikes in the second quarter, but said it was "concerned" that the potential inflationary spike could impact volume demand in retail and foodservice. However, RBC said the company's latest update disproved its concerns as it showed that Bunzl regained some of its market share amid an ongoing challenging backdrop in the.
RBC Capital Markets updated its model for Bunzl (BNZL.L), raising its earnings estimates and price target after the British distribution and outsourcing group published its second-quarter pre-close statement. "We update our estimates post BNZL's recent encouraging Q2 trading update and revisit our price target, the prior version of which [predated] the Iran conflict and associated macro repercussions, which have been a gift to BNZL.
Our EPS estimates for FY26 and FY27 both rise by a touch over 2%, mainly reflecting the positive impact of product inflation.
Our [price target] rises to 2,600p [from 2,200p] mainly driven by a 100 [basis point] reduction in the assumed [weighted average cost of capital].
We retain a Sector Perform rating," analysts said Tuesday.
The research firm noted that the market priced in Bunzl's ability to pass on plastic polymer cost spikes in the second quarter, but said it was "concerned" that the potential inflationary spike could impact volume demand in retail and foodservice.
However, RBC said the company's latest update disproved its concerns as it showed that Bunzl regained some of its market share amid an ongoing challenging backdrop in the.