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Historically, Bunzl acquisitions have been viewed both positively for upgrading profit expectations and also for the share price's relative rating.
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EasyJet announced the payout as it upgraded profit expectations for the current financial year, ending 30 September, from a pre-tax profit of £200m-£230m to between £240m and £250m, more than five times the return in 2009.
Grade can take credit for having cut ITV's cost base – the first time that's really ever happened – to the extent that once its fixed costs are met, 75p of every extra £1 of revenue goes straight to the bottom line, prompting many analysts to radically upgrade profit forecasts next year.
The company's broker Brewin Dolphin issued a buy note with a 150p target, saying: "We are upgrading our profit before tax forecasts by 16% to £8.1m in 2009 and by 11% to £9.0m in 2010".
As a result, broker Commerzbank has just upgraded its profit forecasts and set an 800p price target.
Vivendi has upgraded its profit forecast after strong performances by Universal Music and games division Activision Blizzard in the third quarter.
Rival retailer JD Sports upgraded its profit expectations by £10m in early December as it revealed it was enjoying "relatively strong trading".
The bank called the company "the most expensive software stock in our European universe" and said the current price seemed to be discounting 20% upgrades to profit forecasts.
But shares in the bank jumped more than 7% to above 83p as analysts considered whether to upgrade their profit and dividend forecasts.
The company upgraded its profit and sales outlook, however, because it is selling more goods at regular prices and doing less clearance discounting, though sales remain weak.
She said: Next week's results are unlikely to encourage consensus 2014 upgrades (our profit forecast of £734m, up 10.2%, is at the upper end of the consensus range) but we think that the market should be careful not to underestimate the positive effect that a well-received womenswear collection could have on the company's financial performance.
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