Analyst Jacob Armstrong from Stifel Nicolaus maintained a Buy rating on DCC plc (DCC – Research Report) and keeping the price target at p7,500.00.
Jacob Armstrong has given his Buy rating due to a combination of factors that suggest a positive outlook for DCC plc. The company is undergoing significant leadership changes aimed at enhancing its focus on the energy sector, which is expected to drive operational efficiency and growth. The strategic realignment includes the transition of Kevin Lucey from CFO to COO and the appointment of Conor Murphy as the new CFO, both of whom bring substantial experience in the energy industry.
Armstrong anticipates that these leadership adjustments will bolster DCC’s capabilities in achieving its long-term strategic goals, particularly in the energy sector. The company’s commitment to its “Cleaner Energy in Your Power” strategy is seen as a pivotal move towards building a sustainable, multi-energy business model. Additionally, the projected improvement in financial metrics, such as the EBITDA margin and net debt/EBITDA ratio, supports the expectation of enhanced financial performance, contributing to the Buy rating.