Acquisitions and profits impress the market

CRH’S pre-close trading statement disclosing it had carried out acquisitions totalling a net €2.1 billion in 2006 generated a very positive response from analysts yesterday.

They were also impressed by the indication that pre-tax profits for last year would hit €1.58bn as well as the positive outlook from the group for the current year.

Both Davy Stockbrokers and NCB Stockbrokers have put a price target of €35 on the shares while Citigroup have put a buy on the stock on the grounds that it regards it as a low-risk investment, given its strategic spread in its core markets.