AIM stocks have been under-owned, under-appreciated and often overlooked, especially after five years of relative underperformance, but this has created buying opportunities for investors looking for an upside in the stock price.

The UK small and mid-cap analyst team at Liberum Capital has identified its ten best stocks for dividend yield and upside potential.

Archipelago Resources

This is a lowest cost quartile gold producer, which generated free cash yield of 10% for the fiscal year 2013. The analysts predict 83% upside for the stock over the next one to three years, estimating it to be worth 75p. Investors also get 2.75p of dividends in the next couple months if they buy the shares now – a 7% return before any share price move.

Circle Oil

The stock offers exposure to a balanced and attractive material exploration portfolio with low risk volume growth. Liberum has a buy recommendation on the stock, with a price target of 50p (or 161% upside), saying the current share price is over-discounting Egyptian risk and fails to recognise the growth potential.

Japan Residential Inv Co

The company offers a defensive income stream from a high quality residential portfolio benefiting from a recovery in the Japanese REIT market. The stock is trading at par with the estimated net asset value and offers a 5.7% dividend yield.

Mediterranean Oil and Gas

There are a number of projects in the pipeline promising uplift for the stock, including an offshore development in Italy and a Maltese drilling campaign. The analysts forecast an upside of as much as 200% to the current stock price.

Oakley Capital

The mid-market private equity fund invests in the UK and Western Europe and has increased its NAV by over 90% since its IPO in 2007, but Liberum still expects further upside of around 15% for the shares.

Petroceltic

A gas deal expected in the third quarter is likely to drive up the share price of this firm, which is currently trading at a significant discount to core value. The analysts estimate upside potential of 123% for the stock price.

Providence Resources

The analysts see “huge upside” of up to 400% for the stock of this Ireland-based upstream oil and gas company, driven by an upcoming farm-out campaign and the firm’s plans to drill four new wells in 2014.

Shanta Gold

This stock is a recovery gold play. The company targets a 40% increase in annual production in 2014, which is set to be one of the biggest drivers of the share price. The analysts forecast 100% upside to the current share price.

Winkworth

This is a London focused estate agency benefiting the recovering UK property market. The business has scalable operations, strong cash generation and a high return on capital. The investment is a play on rising mortgage approvals, property transactions and house prices.

Xcite Energy

The company specialises in heavy oil appraisal and development. The recently validated Bentley project is expected to close the valuation gap, with the analysts valuing the stock 200% above its current price.