Builders’ shares ‘will rise by 20%’

SHARES in McInerney Holdings are undervalued, according to Dolmen Stockbrokers, who see a 20% rise in value over the next 12 months.

In an up-beat note to clients yesterday, Dolmen said: “McInerney is one of our top picks on the Irish market for the summer. At €4.80 we believe the company is undervalued and offers an attractive entry level.

“We believe that McInerney should trade in line with the UK sector average of 6x earnings. This gives us a 12-month price target of €5.83 (21% upside) which is based on 6.3x 2005 consensus eps of €0.925.”