- National Grid
- 28 May 2025 10:04:37
Source: Sharecast
RBC said National Grid retains an attractive mix of growth and yield, with a guided circa 10% asset growth compound annual growth rate for FY25-29 well underpinned by strong visibility in the regulated business and a 6-8% EPS CAGR for FY25-29, which may be conservative following the finalisation of RIIO-T3.
"However, we believe that much of this strong performance is acknowledged and incorporated into the current share price," it said, adding that it does not see an imminent catalyst with any revision in the EPS profile unlikely prior to FY26 year-end.
The bank said it was updating for FY25 results with a revised price target of 1,175p, up from 1,150p.
RBC said it continues to see National grid as a strong compounder in the space and believes the business will deliver on its current £60bn capex plan FY25-29.
"However, we struggle for upside at the current share price given an implied circa 35% premium to FY26E RAB in the UK business, whilst our valuation of the US business sits at circa 17x FY26E price-to-earnings."