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United Utilities is no longer quite as united as it was. Having sold off its electricity business, the company is now pretty much a pure play water group. That has proved a solid sector to be in, generating the kind of returns that has had foreign investors and private equity firms scouring the sector for deals.

With a sustainable dividend policy that offers a prospective yield of around 4.5 per cent, the company is a good defensive bet. Buy, says the Sunday Telegraph.

On around 13 times forward earnings, Umeco trades in line with the rest of the sector, but analysts at UBS believe this does not attribute full value to the composite division, where rivals trade on as much as 20 times. A 3.3 per cent yield is little to write home about these days, but with more acquisitions on the cards, there is more value to be had. Buy, says the Sunday Telegraph.

Detica could regain the momentum that took the stock from under 200p to over 300p. The current valuation of around 16 times forecast earnings is unchallenging compared with its closest peers, and given its growing US division. However, the Sunday Telegraph believes the stock is likely to pause for breath in the short-term, suggesting that at current levels, the shares are fairly priced. Hold.

Oriel Securities initiated coverage of Smallbone this week with a Buy and a target price of 152p. The Sunday Telegraph tends to agree that the company offers great growth potential, with new store openings in New York and Moscow well received and 12 more outlets planned through to 2010. Buy.

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