CRH: building on a solid foundation

TEN days before Christmas, Goodbody Stockbrokers blew a raspberry in the direction of that long-term pillar of the Irish stock exchange, CRH, when it issued an unwelcome sell recommendation on the stock.

According to analysts Robert Eason and David O’Brien, the “slowdown in Europe is a concern. The concerns over Euroland are already manifesting itself in lower confidence levels in the construction sector and downgrades to GDP forecasts”.

The view of the brokers is that the share price has been technically boosted by the company’s decision to move its primary listing to the London Stock Exchange, with a secondary listing being maintained in Dublin. As a result of the move, CRH qualified for inclusion in the prestigious FTSE 100 group of top companies, ensuring that it appeared on the radar of a wider group of institutional investors.