JPMorgan reinstates ‘overweight’ rating on DCC

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.