Davy recommends Barlo as a buy

Davy Stockbrokers favours Barlo's prospects advising investors to acquire the stock

Davy Stockbrokers favours Barlo's prospects advising investors to acquire the stock. It has recently acquired Athlone Extrusions for €65 million and its products are viewed as being complementary to Barlo's. It currently has a 15 per cent share of the European plastic sheet sector and the Athlone acquisition is expected to provide a boost to group earnings. The acquisition will have little impact on the current year earnings but should begin to come through in 2002. Davy's revised target of €1.48, up from €1.27 takes into account the benefits of the Athlone deal. This implies an appreciation of 42 per cent in the share price and is recommended on this basis.