JPMorgan adds National Grid to 'analyst focus list'

JPMorgan Cazenove added National Grid to its ‘analyst focus list’ on Tuesday, saying the company is well positioned to benefit from value-accretive networks growth at an attractive valuation, and with questions around the balance sheet answered after a £7bn equity raise.

It noted that National Grid now expects to deliver 10% asset growth to 2029, with a rebased dividend growing in line with CPIH.

"We see the valuation as attractive with 35% potential upside to our sum-of-the-parts based March 2026 price target of 1,200p," the bank said.

JPM said its bull case scenario implies 70% upside, with the stock currently trading around its bear case scenario.

"We believe that the shares are trading below fair value because of election uncertainty, and because of regulatory uncertainty in UK Electricity Transmission - we should begin to see clarity from the regulator’s methodology decision due next week," it said.

JPM said National Grid, which it rates at ‘overweight’, remains a "top pick".

At 1045 BST, the shares were up 1.3% at 897.20p.