Kerry Group rated a buy
Goodbody analyst Liam Igoe took heart yesterday from news that Kerry rival Gibvaudan’s nine-month sales increased by 10% owing mainly to the acquisition last year of Nestle’s ingredients business.
Mr Igoe has placed a buy recommendation on Kerry Group which has spent
€124 million this year on bolt on acquisitions while remaining on the prowl for a major €1 billion plus takeover. Mr Igoe has placed a 17 price target for Kerry shares which traded yesterday at €12.40.
Davy Stockbroker’s Scott Rankin has identified another widely held share as a buy with a potential upside of 13%. Mr Rankin said Irish Life and Permanent, for whom Davy act as brokers, looks very interesting at current price levels.
“While suggesting there might be value in an insurance stock these days is literally a shooting offence, we think investors should take a closer look at Irish Life and Permanent at these levels.”
Davy’s have knocked back their embedded value forecasts by €125m to reflect another 25% fall in equity markets, on top of the drop that has taken place since the group’s results on September 4.
Mr Rankin said their sum of the parts puts a 11.80 value on the shares which traded at 10.65 yesterday. “This is still 13% above the current share price. In our view comparing IL&P with other insurers at the moment is like comparing apples with oranges.”
