NCB Stockbrokers is continuing to advise investors to support Iona Technology, the company which is due to seek a listing on the Dublin stock market later this year. Its latest equity research note on the company suggests it is an undervalued growth story that could yield handsome returns for investors.

Iona is already listed on Nasdaq where the shares have underperformed largely on concerns about the sustainability of profit margins in its core technology business.

Since its flotation in New York last February, its shares have underperformed the Nasdaq computer index by 31 per cent while the stock is now trading at a 40 per cent discount to its peer group in the US. Its American Depository Shares are currently trading around $15 (£10), significantly below the $18 float price.

NCB says concerns about the company are overdone, and that Iona is an attractive proposition for investors. It points to Iona's technical leadership in its niche sector of the software industry. This is beginning to generate significant cash for the company which already has net cash balances of $57 million..