Numis initiates coverage of Bunzl at 'hold'

The broker, which has a target price of 2,600p, said the stock was likely to be supported by Bunzl's track record in mergers and acquisitions.

It noted: "In a period of elevated economic uncertainty, Bunzl’s defensive growth attributes should support relative share price resilience. Long-term organic growth is lower than other listed distributors, but Bunzl’s track record of acquisitions has still driven shareholder value and we would expect this to continue.

"With leverage currently below the group’s target range, we see scope for up to 20% update to our earnings per share estimates over three years from M&A."

As at 0915 BST, shares in Numis were down 1% at 2,562.0p.