01:18 AM EDT, 07/14/2026 (MT Newswires) -- Morgan Stanley expects Diploma plc's (DPLM.L) fiscal third-quarter organic growth to soften moderately against a slightly higher prior-year bar. "There is no reliable consensus for 3Q organic growth, nor do we forecast on a quarterly basis. However, we expect organic growth in 3Q to be slightly below the level delivered in 2Q (+16%) on a slightly tougher yoy [comparison] of c.12% vs c.11% in 2Q25," according to a July 10 earnings preview note. While difficult comparisons are expected to show slow growth in the controls division, the research firm forecasts strong North American momentum in seals and improving trends in life sciences to drive second-half gains. Analysts are also eyeing announcements on additional bolt-on mergers and acquisitions during the fiscal third-quarter trading update scheduled for Thursday. Meanwhile, Morgan Stanley maintained its overweight rating, saying the British technical products and service supplier is "a high-quality, value-add [solutions-based] distributor" backed by structural growth tailwinds with "significant scope" for continuous organic, margin and free cash flow expansion.

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