Deutsche Bank lifts Bunzl price target after update

Deutsche Bank upped its price target on shares of distribution group Bunzl to 2,175p from 1,920p after the company’s latest trading statement.

The bank said the update was "better than feared", with revenue resilience and margin progression in the first half.

DB said the dynamics are in line with what was previously indicated by the company, with food service and retail suffering from government lockdowns but some offset in the grocery and safety, cleaning & hygiene segments.

"However, the offset is much stronger than expected leading to positive organic growth in Q2 (previously expected significantly down)," it said.

Bunzl said on Monday that first-half revenue was expected to increase by around 6% at both actual and constant exchange rates .

Deutsche has a ‘buy’ rating on Bunzl shares.

At 1335 BST, the shares were up 5.4% at 2,181.00p.