Fellow broker Nomura agrees, with a 'buy' tag on the stock. It believes the tough economic outlook in the North West is already priced in and raises its target price by 20 pence to 715 pence. "Like other regulated UK utilities, it offers a stable, attractive real return in an uncertain, low-yield world," the broker concluded. Shares rose 10 pence this morning to 647 pence. HSBC has upgraded rival water company Pennon ( LON:PNN ) to 'overweight' from 'neutral' as it believes the economic fears are "overdone" in waste. Its target price for the South West water firm has been raised by 30 pence to 830 pence on higher estimates, higher retail price index and lower tax expectations. Shares are on the up this morning, rising 13 pence or 1.8 per cent already to 735 pence.