On Tuesday, Barclays in a note upped their price target for the logistics group to 2,550p from 2,350p and reiterated their ‘overweight’ rating, saying that the results had shown the company’s “resilience in hardest-hit areas” and raised their earnings (EBITA) forecasts for the 2020 financial year by 10%.
RBC also hiked their target to 2,000p from 1,750p but retained an ‘underperform’ rating on the stock, saying it had “proved far more resilient than the market had presumed”.
However, the bank said the focus will now shift to “the tougher [comparatives] and tough macro into 2021” and that momentum and sentiment was “unlikely to get any better”.
Meanwhile, JP Morgan raised its own target on Bunzl to 2,550p from 2,350p with an ‘overweight’ rating, while Credit Suisse retained the stock at ‘neutral’ and hiked their target to 2,450p from 2,175p.
In its half-year results on Monday, Bunzl reported that revenues in the half-year to June 30, 2020, rose by 7% to £4.86bn, while pre-tax profits jumped 22% to £245mln or by 16.6% on an adjusted basis to £306.8mln.
The company said the first-half numbers had been helped by demand for coronavirus (COVID-19) related products and grocery items, and ss a result it had decided to restate its previously suspended final dividend and increased the interim payment by 1.9% to 15.8p.
Shares in Bunzl were 0.7% higher at 2,485p in late-morning trading.