02:39 AM EDT, 05/20/2026 (MT Newswires) -- Berenberg raised its price target and forecasts for Diploma plc (DPLM.L) after the British distribution group raised its 2026 guidance again.

"Having upgraded guidance as recently as 18 March, management further increased guidance for FY26 - 12% organic growth (a 3% upgrade) and 6% from M&A (a 3% upgrade); a total 6% upgrade to earnings guidance for the current year, which annualises into c10% upgrades in our outer-year forecasts,"analysts said Tuesday. "Diploma's sustainable compounding model continues to excel, and we now forecast a c34% adjusted EPS growth figure for the current year, demonstrating the strength and resilience of the group despite the wider backdrop, and more than warranting a high-20% FY26 [price-to-earnings ratio]."

In particular, EPS estimates were revised upwards by 5.8% for 2026, 10.4% for 2027, and 10.7% for 2028. Underpinned by consistent management execution, analysts also see "significant"upside potential to outer-year forecasts and scope for "outsized"shareholder returns.

As such, the stock's price target increased to 90 pounds sterling from 75 pounds, with an unchanged buy rating.