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National Grid Added to JPMorgan Focus List – Share Price (LON: NG.) Continues To Gain

Sam Boughedda trader
Updated 3 Jul 2024

Analysts at US investment bank JPMorgan said the valuation of National Grid (LON: NG.) is currently attractive in a note to clients this week, adding the stock to its Analyst Focus List.

The bank maintained an Overweight rating and 1,200p per share price target on the stock, representing a potential 35% upside from its Monday closing price.

They believe National Grid is well positioned to benefit from “value-accretive” networks development at an attractive valuation. In addition, JPMorgan states that questions around the company's balance sheet have been answered after a £7 billion equity raise.

After a 0.9% increase in Tuesday's session, National Grid shares are up a further 1.28% so far on Wednesday.

In early June, Goldman Sachs upgraded National Grid to Buy from Neutral, raising the price target to 1,059p from 1,007p.

They told investors that the company's investment program announcement dismisses questions around funding and leverage, while its equity raise creates an attractive entry point. In addition, Goldman said rising power demand could drive an underappreciated upside for the company as investments into power networks continue to build.

Citi also recently upgraded National Grid to Buy from Neutral, telling investors they see an attractive set-up with a constructive political and regulatory outlook and materially improved balance sheet.

Again, Citi was another firm to highlight National Grid's attractive valuation.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.