United Utilities Stock Remains Overvalued

United Utilities shares are currently overvalued, say analysts, who believe the company has no sustainable competitive advantage over peers

Tancrede Fulop 22 November, 2018 | 7:21AM
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water utilities united uk stock shares company london listed overvalued

Equity analysts are reaffirming their £7 a share fair value estimate for United Utilities (UU.), after the firm released half-year results. Shares are currently overvalued, and we believe the utility company has no economic moat, or sustainable competitive advantage over peers.

Underlying operating profit increased by 7% to £368 million, above our 3.9% full-year estimate. The key driver was increased regulatory revenue partly offset by an £11 million increase in infrastructure renewal expenditure.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
United Utilities Group PLC1,027.00 GBX1.33Rating

About Author

Tancrede Fulop  is an Equity Analyst for Morningstar