On Tuesday, CFRA made adjustments to its outlook on DCC Plc (DCC:LN) (OTC: DCCPF), a leading international sales, marketing, and support services group. The firm lowered its price target on the company's stock to £66.00 from the previous £67.00, while still maintaining a Buy rating on the shares.
The revision followed DCC's fiscal year 2024 (ending in March) report, which showed revenue at £19.86 billion, a 10.6% decrease year-over-year, falling short of the consensus estimate of £20.88 billion. The company's adjusted earnings per share (EPS) also did not meet expectations, coming in at £4.55, slightly down by 0.3% year-over-year, compared to the forecasted £4.63.
CFRA attributed the lowered EPS forecast for fiscal year 2025 to £4.56 from £4.70 to a decline in the company's Technology segment EBIT, which fell by 13.6% year-over-year due to weaker consumer technology product demand. Additionally, CFRA introduced an EPS estimate of £4.68 for fiscal year 2026.
Despite the downward revision, CFRA maintains a positive outlook on DCC's prospects. The firm's analysts expect the company's Energy Solutions services to experience high demand as it aims to deliver cleaner energy solutions to 1.7 million customers, aligning with the increasing emphasis on sustainability. This optimistic view is further supported by DCC's long-term goal to double its EBIT by 2030 from the fiscal year 2022 figures.
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