Goodbody Stockbrokers is recommending Barlo as a buy for investors, saying the shares are under-rated and represent good value.

In a new report on the company, Goodbody notes that Barlo has made very significant progress over the last few years and has achieved strong earnings growth though restructuring, expansion and acquisition strategies.

A number of those acquisitions were made at very favourable prices, the report adds. Barlo is now a meaningful player in Europe and is currently in a strong growth phase with good market positions in sheet plastics and radiators.

The brokers forecast high double-digit earnings per share growth over the next few years from the existing businesses. The group has a strong balance sheet and will continue to be very acquisitive as industry consolidation continues.