National Grid Downgraded by Analysts

Morningstar equity analysts have cut the utility's fair value estimate by 60p and say the firm no longer has a competitive advantage over peers

Morningstar Equity Analysts 17 October, 2017 | 8:03AM

Electricity pylon

FTSE 100 income stalwart National Grid (NG.), which manages the UK’s electricity and gas infrastructure, has been downgraded by Morningstar equity analysts.

We have reduced our fair value estimate to 990p a share from £10.50 due to higher capital expenditure estimates and lower earnings estimates for the US regulated activities because of higher operating costs. The stock, which boasts a dividend yield of over 5%, is currently trading at 919p. National Grid is rated as a four-star stock, which means that it is undervalued relative to its peer group.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
National Grid PLC924.80 GBX0.50

About Author

Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.

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