Citi upgrades National Grid to 'buy' pointing to small premium versus RAB
National Grid
932.00p
16:40 07/01/25
-0.83%
-7.80p
Analysts at Citi upgraded their recommendation for shares of National Grid to 'buy', pointing to the significant valuation discount versus peers.
FTSE 100
8,251.03
17:14 07/01/25
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FTSE 350
4,528.79
17:14 07/01/25
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FTSE All-Share
4,484.17
16:44 07/01/25
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Gas, Water & Multiutilities
5,792.23
17:14 07/01/25
-1.57%
-92.28
They also bumped up their target price for the power company by 3% to 970.0p.
Their move followed regulatory clarity in the UK with regulator Ofgem's proposal "sufficiently attractive" to warrant an acceptance.
And yet, the share price was implying just a 3% premium to the company's Regulatory Asset Base, against about a 20% premium for its UK water peers - a gap that Citi believed should close.