Warburg Dillon Read is recommending DCC as a strong buy for investors. The shares which are trading at around £5 are expected to rise as high as £8 over the next 12 months. The brokers have upgraded their estimates for DCC's long-term growth outlook following a much stronger than expected performance by the company. In its note, the brokers emphasise the significance of this stating "investors will be aware how rare both these events are in the current economic climate".
Warburg Dillon Read says DCC's diversified businesses have benefited from exposure to the rapidly growing Irish economy, the outsourcing by the global information technology manufacturing industry and the expansion of healthcare for demographic reasons.