Europe's recent love affair with utilities deregulation has benefited few companies more than International Power.

Formed last September from the overseas units of National Power, it is Europe's biggest independent electricity provider, with operations in the UK, the Czech Republic, Portugal, Spain, Turkey and soon Italy.

But the company's ambition isn't limited to Europe, a rapidly expanding US operation, as well as businesses in Australia and Thailand have all added to rapid growth.

In November International power released its results for the nine-month's to September, surprising analysts with a better than expected profit of �139m, up a staggering �249m from a �110m loss the year before.

Vindicated

The results vindicated the expectations of Peter Giller, International Power's chief executive officer, who said in January that he would boots the company's profit by 25% a year.

It also provided much appreciated, if only temporary, relief to the company's beleaguered shareholders.

International Power shares had peaked at 327.25p in July, but pressure on fuel prices and the September 11 terrorist attacks saw them fall 133.5p, or over 40%, to 193.75p by 21 September 2001.

The strong results saw the shares bounce back to almost 240p but they have since slid back again to trade at about 195p.

To buy or not to buy

But if the falling share price has been bad news for the company's current owners, some analysts suggest it is an opportunity for people looking to buy.

Peter Atherton, of Schroder Salomon Smith Barney, rates the shares a buy and has set a price target of 290p.

He says: "The management have done very well since the de-merger last Autumn. It is very good on an operational level. Its financial prospects are generally positive."

Other analysts are not so sure.

Andrew Wright, of UBS Warburg, says his company is cautious and has the stock down as a hold.

UBS Warburg currently has a price target of 235p but say the company is only for those who really want exposure to the power sector.