Recent profit forecast upgrades from brokers include Riverdeep, even though its 14 per cent shareholder IBM has just reduced its stake to 8 per cent. Broker to the company, Davy, has ungraded on the back of fourth-quarter figures and "strong guidance given by the company for the future".

At the current price of around $22, the shares are trading on a price/earnings ratio of 15.6 on calendar 2002 prospective earnings, a 58 per cent discount to the average of its peers despite its higher growth rates. Reintegrating its buy recommendation Davy has set a share price target of $38.

Other brokers have less ambitious price targets. Goodbody has a year-end price target of $31.50 and is currently upgrading its forecasts. Merrion's year end target is "north of $30".