Analysts Are Updating Their Bunzl plc (LON:BNZL) Estimates After Its Interim Results

It's been a good week for Bunzl plc (LON:BNZL) shareholders, because the company has just released its latest half-year results, and the shares gained 5.4% to UK£24.90. Results were roughly in line with estimates, with revenues of UK£5.8b and statutory earnings per share of UK£1.49. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bunzl after the latest results.

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Following last week's earnings report, Bunzl's 17 analysts are forecasting 2025 revenues to be UK£11.7b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 7.6% to UK£1.36 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£11.7b and earnings per share (EPS) of UK£1.38 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Bunzl

It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£26.39. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bunzl analyst has a price target of UK£32.80 per share, while the most pessimistic values it at UK£19.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bunzl's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 4.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bunzl is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bunzl's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bunzl going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Bunzl that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.