Shares in Irish fuels-to-healthcare group DCC could hit the £100 (€118) mark within two or three years, Davy Stockbrokers has forecast.
That would see the stock ballooning in price, by approximately 60%, from its current level of around £63.
The Brexit bellwether stock jumped by as much as 2% on the back of DCC saying it expects to generate further strong operating profit growth in its current financial year.
DCC, which is headquartered in Dublin but listed in London, owns the likes of Flogas and Emo Oil and is also active in healthcare and as a technology and electronics distributor.
The group said trading performance in its third quarter — which covers the three months to the end of December — was “good” despite mild weather conditions and difficult economic conditions in the UK, which affected its technology arm.
Davy also sees DCC continuing its strong acquisition strategy.
“DCC’s chance to deploy capital has never been larger and the balance sheet is in excellent shape, with close to zero financial debt forecast this financial year” said Davy analyst Allan Smylie.
That outlook is despite DCC spending little or no money in various years since the mid-1990s.
“As is the nature of the model, these periods were always followed by a material pick-up in activity. We remain excited about the group’s potential to deploy capital over the near and medium term,” said Mr Smylie.