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Nomura Securities maintains a 'Buy' on National Grid (NGG); Remains a Top Pick in European Utilities Space

January 31, 2012 9:53 AM EST
NGG Hot Sheet
Rating Summary:
    3 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Buy' on National Grid (NYSE: NGG).

Analyst, Jonathan Constable, said, "IMS in line, dividend policy for 2012/13 confirmed in line with market. NG reported “continued solid operational and financial performance”, and believes it is on track to deliver US efficiency initiatives. Investment is still expected to be in the range GBP 3.2bn–3.3 bn. NG has also confirmed its one year dividend growth policy for 2012/13 at 4% growth – this implies DPS for 2012/13 will be at 40.9p, and is in line with the consensus expectation prior to the IMS announcement today. National Grid trades on 10.5x 2013E P/E, a discount to UK-regulated peers SVT and UU, which trade at around 15x. A 2013E yield of 6.7% is also competitive versus 5-5.5% for SVT and UU."

For an analyst ratings summary and ratings history on National Grid click here. For more ratings news on National Grid click here.

Shares of National Grid closed at $48.47 yesterday, with a 52 week range of $43.41-$52.18.


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