IAWS now ‘attractive’

LIFESTYLE food group IAWS has been undervalued against its peers for some time and deserves a better rating.

A review of the group by Merrion Stockbrokers concludes the group is capable of delivering high single-digit growth over the next three to five years and possibly low double digit earnings at a push.

IAWS has been downgraded by the markets and was trading at a 15% discount to its European counterparts. Even Merrion removed the stock from its 10 Stock Model for the first time.

In his analysis, Robert Brisbourne of Merrion said the company was an “attractive” investment opportunity for investors with double digit returns expected from earnings growth alone.

“We are therefore returning IAWS to the Merrion 10 Stock Model Portfolio,” he said.

Merrion has also said the shares are worth buying.

Not only has the group visible growth opportunities embedded in its lifestyle food businesses it is also investing heavily in its search for the next new driver of growth.

Earlier this year Merrion removed the group from its portfolio of top 10 stocks on the basis it believed the group had peaked.

Since the recommendation was made in early November IAWS has moved up from €11.50 to €12.12 per share. They fell 8cent yesterday to end the day at €12.12 a share.