Broker snap: Another robust performance from Bunzl, says Investec

28th Aug 2012 10:59

While Investec has maintained its 'hold' rating for distribution and outsourcing group Bunzl, the broker says that company has once again delivered a strong trading performance.Group revenues in the first half came in at £2.61bn and adjusted pre-tax profits were £151.7m, both well ahead of last year and above Investec's expectations.Analyst Robert Morton said that Bunzl has "again shrugged off a difficult economic background". Investec reckons that forecasts are likely to rise by around 2% on the back of Tuesday's results and has put its target price under review."Whilst we regard Bunzl as a strongly managed business that will continue to deliver solid growth over the medium term, we believe that this is largely reflected in the current rating and therefore do not change our 'hold' recommendation," Morton said.Despite the beat, shares were trading 2.25% lower at 1,086p by 11:11.BC