DCC logo

DCC - DCC News Story

6788p 58.0  0.9%

Last Trade - 12:05pm

Sector
Energy
Size
Large Cap
Market Cap £6.62bn
Enterprise Value £7.28bn
Revenue £14.76bn
Position in Universe 118th / 1820

BUZZ-Business Services: Berenberg prefers solid balance sheets in COVID-19 reality

Mon 30th March, 2020 9:42am
** Berenberg says that in a time of extreme uncertainty due
to coronavirus, its preference in the business services sector
is for companies that either have a rock-solid balance sheet or
present a compelling long-term organic growth story
    ** Among the stocks to own in this new reality, the
brokerage names DCC  DCC.L , Eurofins,  EUFI.PA , IMCD  IMCD.AS 
and Bureau Veritas  BVI.PA , all rated "buy" 
    ** The broker downgrades Ashtead  AHT.L  to "sell" from
"hold" saying it believes the scale of earnings declines and
working capital requirements are yet to be reflected in the
share price
    ** It cuts Applus  APPS.MC  to "hold" from "buy", saying
that the company will be materially affected by a combination of
headwinds from COVID-19-related disruption, a tumultuous oil and
gas market and a macroeconomic downturn 
   ** Berenberg upgrades Bunzl  BNZL.L  to "hold" from "sell" to
reflect the defensive operating activities, strong cash
generation and relatively stable balance sheet   
    ** It keeps "buy" on Brenntag and "sell" on Aggreko  AGGK.L 
as well as maintains "hold" on Intertek  ITRK.L , SGS  SGSN.S 
and Univar  UNVR.N 
    ** The brokerage says it expects average y-o-y earnings
declines in the sector of 25% in 2020
    ** Excluding companies benefiting from seasonality or
one-offs, the earnings decline across the sector is likely to be
more than 30% y-o-y, it says
    
   
    

 ((marta.frackowiak@tomsonreuters.com))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.