Berenberg Upbeat on Diploma plc's Growth Amid 'Exceptional' FY26 Momentum

11:12 AM EDT, 09/02/2026 (MT Newswires) -- Berenberg noted Diploma plc's (DPLM.L) "exceptional" momentum thus far in 2026, highlighting the British technical products and services supplier's three successive guidance upgrades for the full fiscal year and long-term sustainable compounding model. "In this context, management guides to 5%-plus organic growth per year, 20%-plus operating margins and 90%-plus free cash flow conversion, with cash proceeds being used to drive further organic growth and M&A under a quality compounding model that has delivered a 26% EPS CAGR in the last five years. The nature of the components provided means that Diploma serves customers' opex budgets, not capex budgets, which offers a high degree of insulation from the economic cycle, and where we think growth is more structural than it is cyclical. Diploma is one of the highest-quality UK companies, in our view," the research firm said in its UK Business Services report published Wednesday. Analysts also pinpointed that the group is capable of undertaking further mergers and acquisitions, citing structural growth, building portfolio quality and "significant" balance sheet headroom. The buy rating on the stock was retained, along with a price target of 90 pounds sterling.