Following Bank of Ireland's profit warning and worries about AIB's exposure to vulnerable US and Polish markets, several financial stocks have been subject of regrading.

The beneficiaries have largely been Irish Life & Permanent and Bank of Ireland. NCB argues that Bank of Ireland's share price has taken too much of a hit and believes the group is likely to outperform its Irish and European peers with consequent support for a share price rise.

Irish Life & Permanent is being touted by Dolmen as a switch play for investors in AIB, whose share price is roughly the same. It points to the lower risk for Irish Life & Permanent earnings over its rival as offering more hopes for the stock.

The view on AIB seems to run across the full range, with NCB trimming its recommendation to add from buy because of short-term uncertainties, Dolmen reiterating its sell position and Commerzbank re-rating the stock upward to a buy from hold, despite earnings doubts this year and next.