Exane upgrades DCC and Experian, downgrades Bunzl

Exane BNP Paribas has upgraded DCC and Experian Group from ‘neutral’ to ‘outperform’, while downgrading Bunzl from ‘outperform’ to ‘neutral’.

In a note about the support service sector on Friday, the investment bank said DCC is the sector’s main beneficiary from falling oil prices.

“We see the effects of a mild winter as transitory,” it said.

“For Experian, we find comfort in cost savings efforts in Brazil and factors limiting the decline rate in direct-to-consumer, alongside a relatively robust backdrop for US consumer credit, Experian’s largest end-market.”

Exane said the rationale for downgrading Bunzl is to help re-balance its exposure “with deflationary pressures dampening growth prospects, while remaining attracted to the business model”.

It also said it retained ‘underperform’ ratings on Aggreko, Babcock and Securitas and remained cautious on G4S.

At 1531 GMT, DCC shares were up 100p (1.90%) to 5,370p, while Experian shares were up 22p (1.91%) to 1,176p.

Bunzl shares weren’t overly affected by the downgrade, with shares up 47p (2.61%) to 1,850p.