It's been another bad week for cider maker C&C and its chief executive Maurice Pratt. On Wednesday it again told the market that its numbers wouldn't meet expectations.

Revenue for the quarter to the end of November declined by 15 per cent year on year. Cider sales were down 18 per cent.

While sales of Bulmers in Ireland grew by 2 per cent, Magners was down 30 per cent in the UK, reflecting continued weakness in the licensed trade. The company said a similar pattern of sales occurred over Christmas.

There is no sight of a recovery in Magners and analysts have predicted that it could continue to lose market share to rival Scottish & Newcastle for another four to five months.

The share price fell by 1 per cent to €3.84.

Deutsche Bank shrugged off the doom and gloom surrounding the drinks group to urge its clients to buy C&C stock. "Investors should not wait until the news flow improves but buy now while the valuation is rock bottom levels," the broker said.

About 5.4 million changed hands on Wednesday, with the share price rallying from an 18 per cent decline in the morning to close the day just 1 per cent down at €3.84. Goodbody notes that C&C's current share price is effectively writing off the value of the Magners' brand.

Deutsche highlights its strong free cash flow and 7 per cent dividend yield, one of the best in town. Bulmers is the clear market leader in Ireland and C&C's spirits and liqueurs business is growing. The company is reducing its capacity and trimming the workforce and a hot summer in 2008 should aid Magners sales.

C&C is operating on a price/earnings ratio of about 10 times, well below the 17 times rating for the alcoholic beverage sector in Europe.

More and more, it looks like a prime candidate for a takeover.