DPC's High Expectations Supported by Market Demand, Execution, RBC Says

MT Newswires Live08-12

DPC (DPC) is seeing an outlook by end markets that is still "robust" and the company's initial 2026 guidance "reflects the right balance," RBC Capital Markets said in a note emailed Wednesday.

The company reported solid Q2 results, with both its aerospace and industrial gas turbines, or IPG, segments driving strong growth, the note said.

RBC also said that aerospace revenue rose 47% and IGT revenue was up 42% year on year, while revenue from the transportation division was flat.

Even though the impact of metal cost inflation pass-through diluted the company's margins by about 60 basis points in Q2, DPC indicated that the pass-through is reflected in the initial 2026 outlook, the note said.

The 2026 outlook will likely set up the company for a "beat-and-raise cadence," RBC said.

RBC kept DPC's outperform rating and lifted the company's price target to $62 from $53, citing a "very strong" balance sheet.

Price: 53.83, Change: +0.06, Percent Change: +0.11

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