JPMorgan upgrades Bunzl, hikes price target
Bunzl
3,432.00p
08:10 18/11/24
JPMorgan Cazenove upgraded Bunzl on Monday to ‘overweight’ from ‘neutral’, lifted the price target to 3,375p from 3,250p and placed the shares on ‘positive catalyst watch’ into the first-quarter trading update on 26 April.
FTSE 100
8,076.02
08:10 18/11/24
FTSE 350
4,460.88
08:10 18/11/24
FTSE All-Share
4,418.78
08:10 18/11/24
General Industrials
7,638.40
08:10 18/11/24
JPM said that following the company’s FY22 results and London roadshow, it is re-vising the story as it finds itself positive for 2023 relative to its wider sector. The bank highlighted three key positives.
"1) Pricing remains positive, particularly into H1-23, but also likely for 2023 overall, in our view," it said.
"2) Leverage finished 2022 at a record-low level, 1.2x under the covenant definition (1.7x including leases and deferred M&A consideration). 3) The valuation has normalised relative to the market and we see some upside, catalysed by earnings momentum."
In its 2023 estimates, JPM is 4% above company-compiled consensus at EBITA and EPS. Compared to current Bloomberg consensus EPS, JPM is 3% above.