Merrion puts Kerry Group purchase on hold

MERRION CAPITAL recently ran the slide rule over Kerry Group and decided that its earnings potential for the next while would remain constrained.

On that basis, it has moved from a buy to a hold recommendation to reflect the lower earnings outlook.

Analyst Robert Brisbourne believes however, the group is capable of delivering earnings growth in the high single figures in the meantime. However the analyst points out that Kerry’s share price has performed strongly and is over 18% in the year to-date.