Broker snap: Panmure trims target for Bunzl to adjust for FX

19th Dec 2012 11:13

Panmure Gordon has trimmed its target price for distribution and outsourcing group Bunzl following the company's poorly-received pre-close trading update on Wednesday morning.The broker said that the statement suggests that all remains consistent with previous expectations, with 6% top line growth at constant exchange rates and flat margins as anticipated.The company also announced two more acquisitions - in Canada and Australia - and Panmure expects these to continue, "given the central part in growth strategy which bolt-ons make to the group."The full-year assumptions remain unchanged but the broker has adjusted its forecasts, reducing its 2012 earnings per share (EPS) estimate by 2.8% to 69.9p and its 2013 EPS estimate by 2.6% to 73.0p.As such, the target price is cut from 1,051p to 1,023p."We adjust our FY expectations marginally for foreign exchange, though we believe the shares remain a 'hold' and Bunzl one of the more consistent performers out there."Shares were down 4.6% at 1,017p by 11:11.BC