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Jul 14 2021, 06:45 IST/BST
We think the risk/reward profile of DCC’s share price is now so positively skewed that we see over 50% upside and struggle to see any material downside. DCC is also now trading at a very material discount to a sum-of-the-parts; we believe it should trade at a material premium! The share has also de-rated versus the market despite a better relative earnings outlook and increased visibility on balance sheet deployment. We expect this disconnect to be short-lived and reiterate our £90 price target and ‘Outperform’ rating.