Analysts at Barclays have initiated coverage of Kerry with an "overweight" recommendation, the equivalent of "buy", and slapped a target price on the shares of €51.
That target price is much higher than what most analysts are forecasting. Kerry is trading at €44.34.
Barclays claims that Kerry now bears all the hallmarks of a "staple" or bluechip company.
"We are confident in Kerry's ability to deliver an attractive low-teens total shareholder return over the next several years," said Barclays' Liam Rowley.
"We also expect to see Kerry flex the balance sheet more aggressively in the coming years and drive further upside to earnings.
We admit that 2013 is, in many ways, a transition year, as internal restructuring costs peak and Kerry rationalises lower return segments of the portfolio.
Efficiencies
"We see scope for positive earnings momentum over the medium term from faster and larger-than-expected efficiencies from the restructuring as well as M&A activity," Barclays added.
Despite its strong record in Ireland and abroad, Kerry has been a little ignored by some investors in the UK, but Barclays makes it clear that should change.
"For a stock with Kerry's impressive track record and earnings visibility, we believe investors should pay greater attention to the roll-up of total shareholder return over the medium term.
"Kerry has, in fact, been one of the most reliable of all the names in our coverage universe, in terms of earnings delivery vs consensus expectations.
"Plus, we believe earnings visibility is supported by Kerry's unique competitive position in a structurally attractive market, with self-help opportunities providing plenty of flexibility," analysts added.
The bank also expects Stan McCarthy's company to look to kick on its merger and acquisition business this year.
Kerry's balance sheet is set up for more than €250m in acquisitions this year, Mr McCarthy said after Kerry revealed its annual results in February.
Barclays' €51 target price and strong recommendation contrast with other analysts.
Liam Igoe at Goodbody Stockbrokers has given Kerry a "hold" recommendation and €45 price target.
Goldman Sachs, meanwhile, advised investors to sell the stock and expects it to fall to €41.50 by year-end.
Deustche Bank has taken an even more bearish view, cutting its target price to €35 with a sell recommendation.
