The distribution group posted first-half operating profit growth of 8% and upgraded full-year guidance as North America returned to growth.

The broker lifts its price target and reiterates its 'buy' rating after Bunzl's first-half trading update signals broadening momentum beyond temporary pricing tailwinds.

Analyst Richard Hunter says Bunzl's cautiously positive trading update should calm investor nerves, with the distributor now expecting good growth in adjusted operating profit for the full year.

The international distribution group lifted its full-year guidance after first-half revenue growth of around 4% at constant exchange rates, with its North America Distribution business recovering as expected.

Underlying revenue rose 2.0% in the three months to 31 March and adjusted operating profit was in line with expectations, leaving full‑year guidance unchanged.