Sector Snap: Baird Upgrades 4 Utilities

COLUMBUS, Ohio (AP) — A Robert W. Baird analyst on Thursday upgraded two water utility stocks and two natural gas stocks, saying the four companies are expected to report above-average earnings from lower-risk operations.

Analyst David Parker said in his research note that he is raising his ratings to "Outperform" from "Neutral" on California Water Service Group and Aqua Water along with natural gas distributors Nicor Inc. and Piedmont Natural Gas Co. Inc.

"Fueled by constructive regulatory cost and investment recovery mechanisms, these two utility groups were first to realize stock price support following the credit crisis last fall," he wrote. "Stock price underperformance in recent weeks, we believe, again provides an attractive buying opportunity for lower-risk, highly regulated utility companies." ...