Edison, an independent research company, has valued shares in state-owned Meridian Energy at $1.70 to $1.86 each.
The valuation by Edison, which is not connected with this month's float for the power generator and retailer, compares with the government's valuation of $1.50 to $1.80 for institutional investors.
Analysts have said Meridian, which accounts for 30 per cent of New Zealand's electricity output, would be susceptible if the Labour/Greens plan to take control of the electricity market.
As the company generates its power entirely from renewable sources, it was also vulnerable to the weather. There was also some risk attached to the possibility that its biggest customer, the Tiwai Point aluminium smelter, would shut down.
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