Research firm Morningstar is valuing Mighty River Power at $2.70 per share but says if the Labour/Green proposal to revamp the electricity sector were to go ahead it could knock the price down to under $2.
Morningstar analyst Nachiket Moghe released a note this morning recommending investors subscribe to the offer.
Moghe is one of few analysts not captured by a blackout preventing those directly involved in the deal from making a recommendation on the stock until 40 days after its shares are alloted.
Investors can register to get a copy of the research here.
Moghe said his high valuation, which is at the top end of the $2.35 to $2.80 range predicted in the investment prospectus, was based on Mighty River Power's strong competitive position.