Diploma upgraded by Numis

Numis has adopted a more positive stance on Diploma (LON:DPLM) by moving to an 'add' rating (from 'hold') following the company's full year results.

The broker highlighted the "growth acceleration and strong free cash flow" as the main reasons for its recommendation upgrade.

In terms of the stock's valuation, Numis commented: "Diploma shares trade at the upper end of the +12m PE and EV/EBITDA ranges of the last five years. But a double-digit EPS outlook and strong FCF generation will enable them to outperform, in our view."

Analysts bumped their target price to 1,015 pence a share from 800 pence.

At 2:47pm: (LON:DPLM) Diploma PLC share price was +12.5p at 912.5p