Growth and income investors should look at Ireland-based ingredients-to-packaged foods play Kerry (KYGA). Berenberg believes this is an exciting time to be invested, ahead of higher levels of acquisitions and signs of industry adaptation towards Kerry's business model.

Kerry is a global manufacturer of ingredients and flavours for the food and beverage industry, as well as a supplier of branded and private-label packaged foods in the UK and Ireland. The company is believed to be well advanced with several mid-sized acquisitions which it can rapidly integrate and extract synergies.

The Dairygold spreads-to-Richmond sausages maker operates in some sluggish end-markets, yet it is outperforming peers through a focus on growth categories and innovation. Tellingly, the industry is increasingly crying out for the value-added services Kerry offers - it is locked into customers' supply chains and helps them reduce both costs and time-to-market for new products. Moreover, following recent disposals, Kerry's consumer foods volumes are thought to be back in positive territory.

Berenberg forecasts a 10% three-year earnings per share compound annual growth rate for Kerry, though this factors in nothing from potential acquisitions. With a €70 price target implying attractive 12.5% upside, Berenberg conservatively forecasts 11.2% improvement in adjusted pre-tax profit to €618 million this year, ahead of €687 million in 2016.

At €62.20, cash-generative, progressive dividend-paying Kerry is worth a look ahead of likely M&A and upwards forecast revisions.