JPMorgan reinstates ‘overweight’ rating on DCC.
JPMorgan Cazenove reinstated coverage of DCC on Thursday with an ‘overweight’ rating and 6,700p price target.
DCC (CDI)
06 June 2024 11:21:08
Source: Sharecast
The bank said it was positive for three reasons.
Firstly, it said the energy segment will continue to benefit from organic growth and value-add M&A, with DCC building a leading position in European B2B solar installation, which is a fast-growing market.
The bank said the goal of increasing Energy profit to £830m in FY30 is achievable, in its view.
Secondly, JPM said that Healthcare is on the cusp of a market recovery.
Finally, it said Technology profit is stabilising, driven by self-help, with portfolio optimisation optionality. "We forecast high single digit percentage earnings per share growth in FY25-26E excluding future M&A," it said.
JPM noted that DCC trades on a 30%/25% discount versus the 10-year median price-to-earnings and relative P/E, respectively.
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