MIDAS SHARE TIPS UPDATE: Clean up for a nice profit by selling Bunzl, a “solutions” company that counts many of us using its products every day
Many of us have never heard of Bunzl, although the “solutions” industry believes that many of us use its products every day of our lives.
The company provides items we don’t even think of – disposable forks, soap in the office toilet, and even surgical gowns. Ensuring these items are in the right place at the right time has catapulted the company into the FTSE 100.
Bunzl distributes products in 31 countries to 800,000 customers, and this week’s annual figures show the company is delivering on its promises in every way.
In short: Bunzl distributes products in 31 countries to 800,000 customers, and full-year figures show the company is delivering on its promises in every way
Earnings are up 12% before tax and the dividend is up 10%. But that hasn’t stopped the company from falling out of favor with analysts.
Stockbroker Brewin Dolphin placed it in January as the third-lowest “analyst’s favorite stock for 2023,” with nine analysts recommending you hold the stock, five recommending you sell it and just five recommending a buy.
A look at the stock price chart might provide a clue to analysts’ unease. Bunzl shares are up 44% in the past five years and 5% this year alone to £29.39.
Midas first recommended them in 2010 at £5.50 and reiterated them as a buy in September last year at £28.33.
As the company continues to clean up, you may want to take profits at this level as the stock has been performing well.
Traded on: main market Teleprinter: BNZL Contact: bunzl.com or 020 7725 5000