• We reiterate MARKET PERFORM despite raising our TP by 69% as DGW’s share price has rallied 67% over the last three months. While DGW’s sales have significantly beat our expectations, we believe the company is fully valued at current 2022F/2023F PERs of 16x/14x (based on our forecasts) vs a three-year average of 9.7x for regional peers. We believe this valuation premium has priced in DGW’s robust outlook (2021F-2024F EPS CAGR of 20%, per our forecasts).

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