The value of niche product focus in uncertain times was illustrated this week as NCB raised its recommendation on building materials group Kingspan.

Apart from a poor performance by its US Tate operation, the group's activities have performed well, helping results beat forecasts.

A strong new product pipeline and the prospect of tighter building regulations are seen as boosting the group's fortunes and, despite a 3 per cent cut in forecasts for full year 2001 and 2002 , NCB still foresees double-figure earnings per share growth.

The broker has pencilled in a 12-month price target for the shares of €4, up from the €2.60 at which it currently trades. As a result, it is reversing its July recommendation and assessing Kingspan a buy from hold.