Kerry Group gets the thumbs-up from Davy Stockbrokers in the wake of its recent set of interim results. The broker notes that the group's earnings per share have grown at an annual average rate of 18 per cent over the past five years, while annual growth has been uninterrupted since its listing in 1986.

"We believe that this rate of growth and out-performance is sustainable," Davy analyst Mr John O'Reilly says. He believes the stock, on a rating of 16.4 times this year's earnings at a share price of €11.90 (£9.37), is cheap and a buy.

However, Glanbia faces a tougher task in the months ahead. Mr O'Reilly points out that the company is in transition from a primary processing business to a more market-led business with sufficient scale to achieve better and more stable margins.

"While it would be foolish to believe that this task will be easy, the potential should not be ignored by the same token," he says.

Davy believes, however, that the share price can advance on positive trading news such as firmer dairy product prices.