Davy Stockbrokers is also tipping Baltimore Technologies as a good bet for investors. The software group recently merged with Zergo to create the largest player in the public key infrastructure (PKI) software market outside the US.

PKI is viewed by industry observers as a key security technology necessary to ensure the growth of the electronic commerce marketplace over the Internet. Davy is forecasting that Baltimore/Zergo will grow its earnings by 66 per cent this year and 90 per cent in 2000. The shares are currently trading at a significant discount to its peers and are recommended as a buy.