Goodbody Stockbrokers is recommending the Irish-based electronic transactions-based group ITG as a buy for investors, but cautions it is "high risk".

In a report on the company, Goodbody notes that this year ITG's electronic transactions operation moved into profitability. Goodbody is forecasting the company's adjusted earnings per share will rise to 39.4 cents next year and to 80.9 per cent in 2003, a 9 per cent upgrade on its previous forecast. Based on a sum-of-the-parts valuation, the broker is forecasting a 12-month price target of €10.20.

Executing the electronic transactions strategy in Britain and Europe is the key task facing ITG and positive news flow on this will be critical to generating strong upward momentum in the share price, according to Goodbody. In the "medium risk" category, the broker is suggesting that CRH is a buy for investors. The group issued a fairly cautious statement at its recent annual meeting, highlighting that a slowdown in growth is not confined to the US. Growth has eased in Ireland, Britain and Europe, particularly in Finland and Poland. These comments are consistent with Goodbody's growth assumption for CRH and is suggesting the shares can rise to €23, up from its previous estimate of €20.

The critical factor again will be positive news flow, particularly from the US economy and the housing market.