Shares of National Grid (LON: NG.) jumped 2% in early London trading after Barclays issued a “buy” rating on the NG. stock. Their analyst Dominic Nash has advised investors to buy shares of National Grid and target GBX 1040, a level that represents a 9.5% premium on yesterday’s closing price.
Yesterday, the energy network giant said that the COVID-19 outbreak could eventually cost the company £1 billion due to a plunge in demand for energy and unpaid bills. As a result, National Grid expects a £400 million drop in its profits in the current financial year.
“The group hasn’t been immune to the effects of the pandemic and since the outbreak has seen increased demand from the residential sector more than offset by plunging demand from the industrial sector,” said Heal Miah, an investment research analyst at The Share Centre.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The energy firm reported a pre-tax profit of £1.75 billion for the last financial year, which is 5% lower compared to the year before.
“The company announced they expect a £400mln hit to 2021 profits from the crisis. Most of this relates to its North American business where they expect increased late payments and bad debts, additional direct costs and the deferral of rate increases,” added Miah.
Today’s high of GBX 967 represents the highest level recorded since March as the stock price recovers from the COVID-19 market selloff.
