RBC Capital upgrades DCC after recent weakness

15th Aug 2024 10:54

(Sharecast News) - RBC Capital Markets upgraded DCC on Thursday to 'outperform' from 'sector perform' and lifted the price target to 5,800p from 5,700p following recent weakness.

It noted that the shares have been weak year-to-date, underperforming the sector by around 16% despite in-line results and no real new news.

"Whilst we expect trading in Healthcare and especially Technology to remain tough, there is recovery potential over time," RBC said.

"Consensus also appears to be factoring in no organic profit growth in Energy for this year, which looks conservative, even factoring in a tough comparative."

It added that M&A potential also provides scope for positive earnings per share momentum.

At 1055 BST, the shares were up 1.5% at 5,255p.