MIDAS SHARE TIPS UPDATE: Clean up with a tidy profit by selling Bunzl

Many of us have never heard of Bunzl, although the ‘solutions’ business assumes that a number of us use the products every day of our lives.

The company supplies items we don’t even think about: disposable forks, soap in the office toilets and even surgical gowns. Ensuring these items are in the right place at the right time has catapulted the company to the FTSE 100.

Bunzl distributes products in 31 countries to 800,000 customers, and this week’s annual figures show that the company is performing in all respects.

Profit before tax increased by 12 percent and the dividend by 10 percent. But that hasn’t stopped the company from falling out of favor with analysts.

Stockbroker Brewin Dolphin in January ranked it third on analysts’ “least liked stocks for 2023,” with nine analysts recommending holding the stock, five recommending selling and only five recommending buying.

A glance at the stock price chart may hint at analyst discomfort. Bunzl shares are up 44 per cent over the past five years and 5 per cent this year alone at £29.39.

Midas first recommended them in 2010 for £5.50, then repeated them as a purchase in September last year for £28.33.

As the company continues to clean up, you may want to take some profit at this level as the stock has had a good run.

Traded on: Main market ticker: BNZL Contact: bunzl.com or 020 7725 5000