Goodbody Stockbrokers continues to be impressed with pharmaceutical giant Elan. In a recent report, the brokers stated its strong 1998 results suggested the group was well on its way to achieving its third wave of growth and was on course to meet its own targets.

Confidence in the group's ability to reach or even exceed its targets is driven by the strong track record and its war chest of $1.5 billion (€1.37 billion) for acquisitions.

The broker also suggests there is considerable scope for Elan to expand its operating margins through directly selling higher margin products. The flow of news about the company will be a critical factor in determining Elan's share price performance over the next two years. Goodbody remains very positive about the outlook for Elan's shares and has reaffirmed its 12 to 18 month target of $85 (up 12 per cent). If Elan were to achieve its own targets the share price should double by 2003, according to Goodbody's.