(Sharecast News) - Analysts at Berenberg raised their target price on business services provider Bunzl from 2,250.0p to 2,650.0p on Tuesday, citing the group's "standout display of earnings resilience" in the first half.
While the analysts praised Bunzl first-half performance, they said the longevity of said earnings resilience would be tested in the second-half as the boost from Covid-19- related products experienced in the opening period subsides.
With the shares up by almost 20% year-to-date, outperforming the UK market by 38%, the German bank also thinks the tailwinds of the first-half now look fully priced-in.
Berenberg also said it remained cautious of potential macro distress in the foodservice and retail end-markets, as well as from the impact of government support schemes tapering later in the year.
However, the analysts pointed out that this was largely balanced by consensus estimates that were "not overly ambitious" - leading it to retain its 'hold' recommendation on the stock.
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