Shares in Irish materials giant CRH fell by as much as 7.5 per cent in early trade in Dublin before recovering, after its share price target was cut by an investment bank.
The fall was sparked by a report from Societe Generale which cut CRH's share price target by 40 per cent due to ongoing problems in residential building across a number of markets.
At 9.44am CRH shares had rallied and were trading down almost 3 per cent at €14.68 bringing to almost 38 per cent the value in its shares so far this year. The Iseq, which fell over 2 per cent in the first 30 minutes of trading stood at 4,808 or off 1.6 per cent.
In an investors' note Societe Generale cut its price target to €12.90, down from €21.40 noting that CRH'S trading statement contained disappointing growth targets.
It also noted that the company derives more than 60 percent of earnings in countries affected by a construction slowdown.
Yesterday CRH shares dropped by 12.7 per cent - the most in nearly six years - as investors reacted to the group's announcement that pretax profits might show a high single-digit percentage decline this year.
Pretax profit is now expected to be approximately €1.72 billion, down from the €1.9 billion reported last year, more than 5 per cent below analysts' expectations.
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