Kepler Cheuvreux initiates Diploma stock with buy rating

Published 19/06/2025, 09:28
Kepler Cheuvreux initiates Diploma stock with buy rating

Kepler Cheuvreux initiated coverage on Diploma Plc. (LSE:DPLM) with a buy rating and a price target of GBP53.50 on Thursday.

The research firm highlighted Diploma’s position as a global specialist distributor with a decentralized, expert-driven model that delivers high-value, mission-critical products to high-growth end-markets, with high-value services at point of sale.

Kepler Cheuvreux noted that Diploma’s autonomous businesses foster agility, customer intimacy, and accountability, creating strong loyalty and reducing competitive pressures, which supports robust pricing power, best-in-class profitability, and resilient organic growth.

The firm expects inorganic growth to continue complementing Diploma’s organic expansion, providing potential upside to consensus expectations, backed by a strong M&A track record that has consistently delivered accretive results.

Kepler Cheuvreux described Diploma’s valuation as attractive, underpinned by strong profitability, robust growth, and structural advantages that position the company favorably in its markets.

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