DAVY VIEW

DCC’s Q1 trading update reinforces the resilience of the business model and the benefits of diversity; two of the divisions traded behind the prior year, but two also traded ahead. This performance, coupled with minimal net debt and access to >£2bn liquidity, leaves the group in an excellent position. It is already recommencing capex projects, which we think should underpin future organic market share gains. It also ‘remains active’ on M&A and we continue to believe that the current environment has increased DCC’s acquisition opportunity set. We are moving our Mar-2021 EPS +3% to 325p and re-iterate our ‘Outperform’ rating.