SHARES in Weir Group have been upgraded by brokers at Canaccord Genuity.

In a research note Harry Philips and Rob Ellis raised their rating on Weir from hold to buy.

However the pair did lower their target price on the stock from 2725p to 2340p.

The changes came as the analysts looked at the prospects for shale oil in North America, which is an important market segment for Weir.

Mr Philips and Mr Ellis predict a 16 per cent fall in active rig numbers in the United States next year with a 15 per cent dip in Canada.

However shale production is expected to grow up until the middle of next year before levelling off.

The note said: "This is likely to be part of the solution to the ongoing over-supply in the oil market."

As a result of that turnover and operating profit forecasts for Weir's oil and gas division were trimmed for 2015 and 2016 while Canaccord also lowered its predictions slightly for the minerals arm.

However the analysts said: "We recognise that Weir will be a volatile stock as a consequence of the uncertainty but North American shale is 26 per cent of sales and 35 per cent of operating profit in our 2015 numbers - there is a robust core underpinned by a 66 per cent aftermarket content and backed by a strong balance sheet."