RBC Capital downgraded Bunzl (LON: BNZL) to Sector Perform from Outperform on Tuesday, citing mounting industry concerns and increased competitive pressure.
The firm also cut its price target on the FTSE 100 distribution and outsourcing group to 2,350p from 2,600p.
In its note, RBC Capital pointed to “Street-wide concerns” that Bunzl’s profit warning in April may not be a “one and done,” suggesting further headwinds could emerge.
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Analysts added that fresh feedback from the market indicates Bunzl is facing growing competition, which could weigh on organic margins over the medium term.
The cautious stance comes amid broader investor nervousness around Bunzl’s near-term outlook.
RBC’s downgrade echoes a similar sentiment from JPMorgan, which in April lowered its rating on the stock to Neutral from Overweight and slashed its price target to 2,700p from 3,500p.
At the time, JPMorgan said that while Bunzl’s valuation remained attractive, “renewed uncertainty weighs.”
Bunzl shares have been declining throughout 2025 (-32.9% YTD), currently trading around the 2,220p mark. In the last three months, it has declined by over 25%, while in the last week, the stock has fallen by more than 5%.
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