BUZZ-Bunzl: CS sees margin pressure continues, downgrades

** Business supplies distributor Bunzl down >2 pct after Credit Suisse downgrades to "neutral" from "outperform"

** Sees Bunzl as a stable, cash generative business that can combine low single-digit organic growth with accretive and value creative M&A as it consolidates its fragmented end markets

** However, expects that underlying EBITA margins will continue to decline driven by rising operational costs and large sophisticated clients

** CS expects further underlying margin pressure with trends from 2018 essentially continuing into 2019

** Co said margins continued to be pressured by increasing costs, despite FY profit beating expectations

** CS estimates underlying margins will fall 24bp in 2019 compared to 30bp decline in 2018, also adds through 2019 expects organic growth to slow, based on its CS lead indicator

** CS cuts PT to 2450p from 2600p

(Reporting By Geetha Panchaksharam)