Diploma shares advanced 1.5% to 7,305 pence on Monday, extending gains after J.P. Morgan upgraded the FTSE 250-listed technical distributor to Overweight from Neutral.
The stock opened at 7,240 pence and reached an intraday high of 7,310 pence, bringing its 52-week range to between 4,970 pence and 7,755 pence. The upgrade follows a sharp increase in the broker’s price target to 8,250 pence for December 2027, up from a prior December 2026 target of 5,760 pence.
J.P. Morgan also raised its adjusted earnings per share (EPS) forecasts for Diploma. The FY26 EPS estimate was lifted by 14.6% to 253.98 pence, while the FY27 forecast climbed 14.7% to 263.65 pence. Analysts cited an improved view of the company’s earnings upgrade capacity in 2026, noting that organic growth is expected to normalize toward a long-term average of around 6% in FY27 following two years of elevated performance.
Diploma’s first-half results showed strong momentum, with organic revenue growth of 15%, total revenue up 17% (including a 3% contribution from net acquisitions), and operating margin expansion of 300 basis points to 24.5%. Earnings per share rose 36% during the period.
The broader market context at the time of the upgrade showed the FTSE 100 largely flat at around 10,812, with basic resources supporting European equities while the energy sector weighed on performance. AstraZeneca’s near-1% decline contributed to index drag.
