Jacob Armstrong, an analyst from Stifel Nicolaus, maintained the Buy rating on DCC plc. The associated price target is p7,100.00.
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Jacob Armstrong has given his Buy rating due to a combination of factors that highlight DCC plc’s strategic growth initiatives and financial prospects. The company has recently announced two significant acquisitions from UGI International, which are expected to enhance its market presence in the UK and Austrian liquid gas markets. The acquisition of FLAGA introduces DCC to the Austrian market, bringing a strong customer base and infrastructure, while the AvantiGas UK cylinder business acquisition strengthens its offerings for off-grid customers.
Armstrong’s rating is also influenced by the financial benefits of these acquisitions, which are anticipated to be earnings accretive and align with DCC’s disciplined M&A strategy. The FLAGA acquisition, valued at approximately €55 million, is expected to deliver a mid-teens return on capital employed in its first year. Additionally, these strategic moves are seen as supportive of DCC’s long-term ROCE targets and shareholder returns, with a price target set at 7,100p, indicating a significant upside potential from the current stock price.
According to TipRanks, Armstrong is ranked #3955 out of 10041 analysts.