KERRY Group has been given a strong vote of confidence by two of the State's biggest stockbroking firms. Riada has given the group's shares a strong "buy" recommendation. Riada analyst Mr Joe Gill says: "The foundations for further earnings momentum are in place and ingredient acquisitions are likely."
Riada is expecting pre-tax profits to rise from £51.2 million to £60.7 million in the current year, followed by £70.1 million in 1998. Davy, Kerry's own broker, has broadly similar 1997 and 1998 forecasts of £60.1 million and £69.3 million.
On further expansion, Riada states: "With existing business humming, ample cash-flow and a flexible equity structure, we anticipate significant growth over the next five years."
Riada has also given Avonmore a strong "buy" recommendation after last week's excellent results and is expecting profits to rise sharply from £36.5 million to £47.1 million in the current year followed by £53.2 million in 1998.
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