We were positively surprised by DCC’s Capital Markets Day. The opportunity set to deploy capital is expanding at an accelerating pace and ambition levels are high across all four divisions. Organic growth potential is also well underpinned, with scope to drive 3-4% over the medium term in our view. Furthermore, management bandwidth remains high priority, with additional capacity added in recent years to support future growth. We think share price risk/reward looks particularly attractive given the 7% pull-back year-to-date. The stock is trading on 18.6x FY 2019 P/E.
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