Kerry Group downgraded to hold

MERRION Stockbrokers has downgraded its rating on Kerry Group, believing the recent strong run in the company’s share price now fairly values the business.

In a 24-page research report, Merrion analysts said the Tralee-based company should see high mid-single digit earnings growth but the 18% rise in Kerry’s share price in the year to date now puts its value in line with other consumer food groups. It downgraded its rating from buy to hold.

Merrion said external factors, such as the weakening dollar, higher commodity prices and higher energy prices, are reducing the prospects for the company to beat profit forecasts.