United Utilities Shares Trading Near Highs, Gain Price Target Raise

United Utilities shares (LON: UU) are trading up near highs, with a resistance around 1,160p once again seeing the price take a pause.

Bullish sentiment is growing however, with shares up 9.5% since the start of the year, and bulls given a boost by an increased price target from JPMorgan.

The analysts raised their target to 1,300p from 1,200p, reiterating an “Overweight” rating on the stock.

The company reported its annual results in May, revealing a 4.2% increase in its dividend that will have delighted income investors. The company also highlighted a 24% reduction in storm overflow spills, demonstrating progress in environmental stewardship.

The average price target on the street of 1,244p reflects a healthy upside from current price action. Pre-tax profits doubled in the the last year, and funding for a £13.7billion investment plan has been secured, setting the tone for what has been a solid bull trend.

Despite this, near term resistance remains.