IAWS's purchase of US artisan baker La Brea expands the geographical spread of the group's business and should prove attractive for investors, according to Davy Stockbrokers.

The broker, which is IAWS's stockbroker, says close to 60 per cent of the firm's invested capital is now in its food operations. The food division's share of group earning s will continue to rise and in time will become the dominant division in terms of delivering earnings and cash flow.

The stock is not cheap in an Irish context as it currently traces at a premium to the food and industrial sector's average.