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Goodbody gives green light for investment with buy-Irish bulletin

STOCKBROKER Goodbody is showing interest in non-continental European exposure and is "getting a bit more comfortable with [investment] in Ireland".

That's the main take from the firm's new list of stock picks – shares it is recommending as a "buy" to investors.

Among recommendations for the second quarter of 2013 are Irish medium-size companies Premier Oil, Glanbia, builders merchants Grafton, United Drug and Greencore.

It upgrades Glanbia to "buy" status, citing the room for growth offered by the nutritional sector and similarly upgrades food supplier Greencore.

Goodbody says it is exercising caution in its approach to building materials supplier CRH, whose "ratings are vulnerable". It says CRH has relatively large exposure to challenging European markets. It says progress for CRH is still anticipated for 2013 because of ongoing recovery in the US and cost savings.

In contrast, Dublin stockbrokers Davy has upgraded its 2013 and 2014 forecast for CRH.

On the smaller company side Goodbody says it is still bullish towards recruiter CPL and financial tech consultants First Derivatives, as well as oil and gas explorer Petroceltic and food supplier Total Produce.

The stockbroker's picks enjoyed good results in the last quarter, with its core stock picks delivering a 16pc return in the first three months, compared to an average 5pc rise in the European equities market. Its portfolio of smaller company stocks gave a 28pc return compared to a European average of 10pc.

Irish Independent