Bunzl share price dips after trading update

Bunzl’s share price (LON:BNZL) has fallen into the red in today’s session as the company updated investors on its recent trading, reaffirming its full-year expectations. The update came after the support services group revealed in April that its revenue growth had slowed in the first three months of the year.

As of 10:02 BST, Bunzl’s share price had given up 1.21 percent to 2,120.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent lower at 7,416.08 points. The group’s shares have given up more than seven percent of their value over the past year, as compared with about a 1.6-percent fall in the Footsie.

Bunzl updates on trading

Bunzl announced in a statement today that its expectations for the year ending December 31 remained unchanged with overall trading consistent with the slowing underlying revenue growth indicated at the time of the first quarter trading statement in April.

The support servicecs group further noted that at constant exchange rates, its revenue, adjusted for the impact of the number of trading days in the period relative to the prior year, is expected to have risen by around two percent due to underlying revenue growth of approximately one percent and a similar impact from acquisitions, net of disposals completed in 2018.

Bunzl said in the statement that its acquisitions pipeline remained ‘active,’ and that with ongoing discussions taking place, it expects to complete further deals during the remainder of the year.

Analysts on FTSE 100 group

The 12 analysts offering 12-month targets for the Bunzl share price for the Financial Times have a median target of 2,375.00p, with a high estimate of 2,850.00p and a low estimate of 1,800.00p. As of June 21, the consensus forecast amongst 15 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.