Despite the difficulties faced by smaller Irish stocks, ABN Amro has identified a number of companies which it believes could do well for investors. It is tipping Barlo, Grafton, Green Property, Jurys Doyle Hotel Group and Kingspan.
The brokers once again state that most of the smaller companies are potential acquisition targets on foot of consolidation across Europe.
Plastics and radiator group Barlo has recently issued an upbeat trading statement following a strong set of full-year results. A substantial capital expenditure programme will drive organic growth, which will be supplemented by acquisitions in the plastics and radiator sectors, according to the report.
Building merchants Grafton is expected to confirm positive underlying trading conditions in its forthcoming interim results. ABN Amro says Grafton offers investors both quality and value.
Property group Green has been the centre of MBO speculation and ABN Amro expects the company's management team to respond to sector developments.
Jurys Doyle has significantly outperformed in the third quarter, driven by strong full-year results and a positive trading statement. Further organic growth at Kingspan, combined with its dominant market position, should underpin its share price going forward.
