DAVY VIEW

We think consistency of strategy and execution has been the key driver of DCC’s performance for the last two-and-a-half decades as a listed plc. In this report, we argue that DCC has the vision, management bandwidth, portfolio breadth and opportunity set to continue compounding capital through-cycle at attractive rates of return for a long time to come. We think the recent expansion of this opportunity set in particular has not been fully appreciated by the market. The stock trades on 18.3x 2020 P/E, with potentially very meaningful earnings accretion from deal flow. Our £88 price target suggests over 30% upside.