The strong position established by Power Leisure in the Irish market and its innovative, if more risky, plans for expansion into the British market, have seen Merrion Capital rate the Paddy Power parent a "buy". The broker believes the shares can rise by 35 per cent before representing fair value, given the ratings of rivals in its sector.

Merrion feels the strength of the group's betting shops and tele-betting operations are enough to offset the risk involved in its move into internet betting, which may yet provide the opportunity to grab a significant share of the lucrative British betting market without the cost of establishing a physical presence.

The company will also benefit from the move to lower taxation on betting.