The prospect of continued strong economic growth and the implementation of the National Development Plan is seen by NCB as bolstering the prospects of the construction sector in the medium term. It sees several value opportunities, including Grafton, Heiton Holdings, Readymix and McInerney.

On the merchanting side, it notes that both Grafton and Heitons are operating on lower multiples of prospective earnings than British rivals with poorer growth prospects, and that the outlook for the sector going forward is favourable.

On the building materials front, NCB believes Readymix offers a buying opportunity, with its current rating failing to take account of group growth prospects.

McInerney is suffering amid negative sentiment towards the sector as a whole, but with earnings forecast to rise by 19 per cent this year on the back of the buoyant house-building market, which remains a key source of profits for the group, the broker sees the shares current low multiple as offering significant value for investors.