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DCC - DCC News Story

6788p 58.0  0.9%

Last Trade - 12:05pm

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

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