'CRH share price to jump 25%' on future of sector, Portugal venture

BUILDING materials group CRH will benefit from a better outlook for the Irish construction sector and its new joint venture in Portugal and could see its share price jump by 25%, according to Davy stockbrokers.

Davy analyst Joe Burnell said the broker would upgrade its earnings forecast for CRH and that the share price could reach €22 within a year. CRH closed yesterday at €17.55. Mr Burnell said the predicted slowdown in the Irish housing market did not materialise and this was good for CRH. He said new house completions would match last year's record figure of 69,000 units, 5,000 more than originally predicted.

The company would also benefit from improved non- residential investment, which would deliver 5% year-on-year growth and help offset expected margin pressure in CRH's key product areas.