0807 GMT [Dow Jones] Royal Bank of Scotland upgrades Pennon Group (PNN.LN) to buy from hold, and raises its price target to 640p from 570p as it takes a look at the UK water sector. Says the company had a good year in '09/'10, with results sharply ahead of expectations. Also notes the dividend policy was ahead of expectations and the Lakeside energy from waste plant is now on line and included in the valuation. Raises Northumbrian Water Group (NWG.LN) price target to 330p from 310p, and keeps at buy following the company's better-than-expected FY results. Pennon shares +1.6% at 547p, and Northumbrian +0.5% at 288p. (
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[email protected] (END) Dow Jones Newswires June 14, 2010 04:07 ET (08:07 GMT)