DCC - DCC - Positioned for another good year

Davy Research
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FY 2018 is off to a good start with trading across all divisions in line with expectations and FY guidance reiterated. The process to complete the recent large retail and LPG transactions is also progressing to plan. We think that the recent pull back in the share has been mainly driven by movements in the bond market and provides an attractive entry point, with 13% upside to our £80 price target. The stock is trading on 20x FY 2019 P/E with material potential earnings upside from balance sheet deployment.