Business Services Weekly: The Service Station

Research evidence excerpt

Business Services Weekly: The Service Station

Deutsche Bank

Research

Europe Industry Date

12 June 2026

Business Services Business Services

Periodical

Weekly

The Service Station

David Brockton

In the FTSE 100, two stocks in our coverage Bunzl and Experian trade more than

Research Analyst

1 standard deviation below their 10-year average +12m P/E (as do Ashtead +44-20-754-11721

Technology, Bureau Veritas, Essentra, RWS and Teleperformance elsewhere in

our coverage). Both are key picks and we believe their discounts present Steve Woolf

opportunity. Experian has been impacted by structural concerns over AI on its

+44-20-754-54604

business model, but we believe these concerns are mostly misplaced, particularly

for its B2B business (74% of EBIT), where its moat is rooted in closed-sourced long- James Beard

term predictive data and its products are deeply embedded within its clients’ Research Analyst

infrastructure. Winning this debate may take time, but we see limited trading risk +44-20-754-56765

(the Q1 guide due in July is for 7% organic growth) and a large distribution Ben Wild

partnership with an AI-platform could be a positive catalyst. Despite recently re- Research Analyst

rating, Bunzl still has a notable discount due to residual concerns over prior year US +44-20-754-15334

foodservice execution issues and subdued US demand. We have consistently Bharat Rajesh, CFA

argued its US-issues are fixable. The US backdrop is subdued but there is some Research Associate

hedge in the business (weak foodservice can result in better grocery), FY26 has

started well (Q1 underlying +2%) and FY guidance for some underlying growth

(DBe +1%) could prove conservative should signs of higher cost inflation for

plastics and cleaning products be passed on without undue demand destruction.