Goodbody Stockbrokers has downgraded Irish Life & Permanent shares from a buy to an add, on the basis that the shares have already achieved its previous price target of €11.30. In a report on the company, Goodbody is upgrading its 12month price target to €13, suggesting it could rise from current levels of €12.25 over that period.

Irish Life & Permanent does most of its business in the low-tax, fast-growing domestic economy and within that context has its biggest exposure to two of the fastest growing financial product segments, life and pensions. It recently announced a share buy-back programme, which is being interpreted as a willingness to pro-actively manage the capital base. It offers substantial scope to increase balance sheet gearing and gives it greater scope for further acquisitions. The share price has performed strongly in anticipation of its recent interim results, while the company is also the sole bidder for TSB Bank. This would give it access to the clearing system and could also make it attractive as a takeover target.