Bunzl Shares Slip After Deutsche Bank Downgrade to Hold

Bunzl (LON: BNZL) shares fell on Wednesday after Deutsche Bank downgraded the FTSE 100 distribution group to “hold” from “buy,” arguing that the stock’s recent rally has now caught up with its operational recovery.

Bunzl stock dropped roughly 1.8% to around 2,756p in London trading, extending losses from Tuesday’s close of 2,806p, as investors digested the broker’s more cautious stance. The shares had earlier touched a low of 2,750p before paring some of the decline.

Deutsche Bank analyst David Brockton, who had counted Bunzl among his top picks in the business services sector for 2026, said management’s tone has “noticeably improved” over the past 18 months after a difficult 2025 marked by weak volumes, deflation and self-inflicted execution problems in the group’s North American distribution arm — an operation that accounts for roughly 30% of revenue.

That division has since restored service levels and product availability, with volume growth returning this year.

Despite the improved outlook, Brockton lifted his price target only modestly, to 3,000p from 2,950p, saying Bunzl’s shares have largely recovered the ground lost after last year’s profit warning and now trade close to long-run average valuation multiples.

He expects half-year results, due September 1, to confirm better operational delivery, with potential upside from product cost inflation and a revival in acquisitions.

Bunzl, which supplies packaging, gloves and cleaning products to businesses worldwide, remains one of the FTSE 100’s steadiest performers, though Wednesday’s move underscores growing caution among analysts over stretched valuations following the stock’s recovery.