Deutsche Bank lifts Bunzl price target after Q3 update

Deutsche Bank upped its price target on shares of distribution and services group Bunzl to 2,971p from 2,175p on Thursday following the company’s third-quarter update a day earlier.

The bank said it was lifting 2020 earnings per share estimates by 22% and 2021 by 12% after the update.

"This is largely due to continuing strength in Covid-19 related protection items, as well as announced M&A and a limited recovery in its other business," it said.

"We continue to take a cautious view as to how 2021 will play out (most likely a decline in large Covid-19 orders but conversely a potential recovery in other sectors) but we believe that Bunzl has shown the resilient of its business model and its strength via diversity of end customers and markets.

"This is not to say that there are no risks but more that at the moment the risks appear under control."