Davy Stockbrokers is suggesting that investors should look at Viridian, the Northern Ireland-based electricity group. The shares have fallen back in recent months, declining by almost 17 per cent since November and are currently trading at around £6.24 sterling (€9.79). It has underperformed the FTSE electricity sector by 17 per cent and the FTSE Eurotop electricity sector by 12 per cent, with no negative news attached. Davy sees this decline as a potential buying opportunity.

Possible concerns regarding regulatory risk are justified but should not be overstated, according to Davy. A key focal point for investors will be Viridian's meetings with analysts in March, but the brokers say its inexpensive valuation and prospects for further growth in its unregulated business could be a catalyst for share price recovery.