Goodbody Stockbrokers has highlighted value for investors among the smaller capitalised stocks listed on the Irish market. Among the stocks classified as a "strong buy" are Barlo, Grafton, Jurys Doyle, Kingspan, Datalex, IFG and McInerney.
Barlo has achieved strong earnings per share growth in recent years, mainly due to successfully implementing a restructuring plan and its acquisition strategy, and margins are expected to expand.
Goodbody believes these factors will lead to earnings per share growth of 20 per cent over the next two years and suggests the shares could rise to €1.50 (£1.18).
Grafton has also achieved earnings growth, with the brokers predicting this earnings momentum can continue, with the Irish construction sector remaining buoyant. It is forecasting a share price target of €38.
Jurys Doyle is another share with a track record for strong earnings and its expansion strategy should underpin this in the future. Goodbody is placing a price target of €12.60 on this stock. Kingspan is also on course for continued growth, with its share expected to reach €5.15.
Datalex has held up despite tough market conditions, with Goodbody, its brokers, claiming it is a company to watch this year. IFG also attracts a strong buy recommendation with the broker estimating the shares are undervalued by about 36 per cent.
